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ARTICLE · 10 AUGUST 2011

Upcoming Changes To The Law Applying To Construction Contracts

Wedlake Bell LLP
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The Housing Grants, Construction and Regeneration Act 1996 (HGCR Act) introduced the right for parties to construction contracts to adjudicate, and introduced the payment mechanism which the construction industry is now familiar with.

United KingdomReal Estate and Construction
Suzanne Reeves
Suzanne Reeves

The Housing Grants, Construction and Regeneration Act 1996 (HGCR Act) introduced the right for parties to construction contracts to adjudicate, and introduced the payment mechanism which the construction industry is now familiar with. This Act has been in force for over 10 years but is about to change when the Local Democracy, Economic Development and Construction Act 2009 (LDEDC Act), comes into force making various amendments to the original Act. The LDEDC Act is expected to come into force this autumn. Anyone who deals with contracts for construction work will need to be aware of these changes.

The Current Law

To fall under the protection of the HGCR Act under the current law the construction contract must be in writing. It must also be for works or advice specified in the Act (i.e. it must not relate to oil or gas extraction, nuclear power or works for a residential occupier etc).

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