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ARTICLE · 09 NOVEMBER 2011

Construction Act Changes What You Need To Know

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After years of discussion and speculation, changes to the Housing Grants, Construction and Regeneration Act 1996 (the Act) will come into force in England and Wales on 1 October.

United KingdomReal Estate and Construction
Doug Wass
Doug Wass

Introduction

After years of discussion and speculation, changes to the Housing Grants, Construction and Regeneration Act 1996 (the Act) will come into force in England and Wales on 1 October. The revisions to the Act will usher in certain fundamental changes, most notably the extension of the Act to cover oral contracts. Whilst other changes, particularly those relating to payment notices, are more procedural in nature, the consequences of failing to comply with them could be serious.

Application

The revisions to the Act will only affect construction contracts (including building contracts, sub-contracts and appointments) entered into on or after 1 October. As a result, payment and adjudication provisions in construction contracts entered into on or after 1 October will need to reflect the changes in the Act. If they do not, the payment and adjudication provisions in those contracts will be replaced by the relevant provisions of the Scheme for Construction

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