The Application Of The Amended Construction Act

The coming into force of the amended Construction Act in England and Wales on 1 October prompted some developers to push through their contracts to avoid the new payment regime. Nevertheless, the transition from old to new rules is producing headaches. For instance, however inconvenient it may be, a subcontract entered into on 1 October is governed by the new Act even if the main contract entered into on 30 September is not.

Worse still, contracts drafted for the old regime may in fact be subject to the new. In such cases the agreed payment provisions will be replaced by statutorily implied payment terms that unwittingly won't have been operated. As a result some payers will incur substantial liabilities.