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Construction Act changes: House of Lords sign-off

United Kingdom
10/11/2009
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Yesterday the House of Lords approved the amendments to the Local Democracy, Economic Development and Construction Bill made last month by the House of Commons. (Click here for our Law-Now which includes a link to a Commons-approved summary of how the changes to the Housing Grants, Construction and Regeneration Act 1996 will operate and a link to how the amended Act would look, if the Bill is enacted and brought into force.) The Lords said nothing to shed any light upon how the new amendments may operate.

All that remains for the Bill to become an Act is royal assent, which is expected next Wednesday, 18 November, in the Queen’s Speech. However, the changes will only affect construction contracts entered into after the new Act comes into force. It seems this will not happen before late 2010 to allow for consultation on changes to the statutory Scheme. The Scheme’s rules are implied into construction contracts that do not make certain provisions for adjudication and payments, as the 1996 Act requires.

If the bringing into force of the 1996 Act’s changes is to be delayed, it is unclear whether the government in power in late 2010 (given the intervening general election) will decide to bring them into force.

Reference: House of Lords’ consideration of the House of Commons’ amendments to the Local Democracy, Economic Development and Construction Bill

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