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ARTICLE · 14 DECEMBER 2011

Be Prepared Or Pay…

Some important changes to the Construction Act came into force on 1 October 2011. Employers, contractors, sub-contractors and consultants should all be operating the new regime for contracts entered into since 1 October.

United KingdomReal Estate and Construction
Rebecca Evans
Rebecca Evans

Some important changes to the Construction Act came into force on 1 October 2011. Employers, contractors, sub-contractors and consultants should all be operating the new regime for contracts entered into since 1 October.

Under the old Act, the industry was used to payment notices and withholding notices, and it did not take long for people to realise that there were no consequences if payment notices were not given. It took Parliament even longer to do anything about it, but now they have. They have also made some changes to adjudication.

The new Construction Act has changed the way payments are made. The payee now has greater rights in the absence of the correct notices being given on time. If you do not issue the correct notices under the Act, you could be forced to pay for works which have not been properly carried out or carried out at all, and you will be unable to correct the position until the next pay date.

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