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Are you involved in construction projects? NEW RULES APPLY NOW

Scotland
01.12.2011
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Construction contracts entered into on or after 1 November 2011 in Scotland (1 October 2011 in England and Wales) must comply with new legislation.

What is changing?

Payment notice procedures have been changed with new Payer Notices, Payee Notices and Pay Less Notices being required. Pay when certified is banned and partial suspension is now permitted.

The payment changes are likely to have the biggest impact on the public sector as internal payment procedures may no longer be sufficient to ensure compliance with the new rules.

There has been a flurry of amendments to the standard form contracts by JCT, SBCC, NEC, ICC (formerly ICE), IChemE, RIBA and PPC. If a construction contract is entered into after 1 November 2011 then the amended standard form contracts must be used. Use of the "old" standard forms, without amendment, will mean that your contracts do not comply with the new legislation. You may find that the Scheme for Construction Contracts has come into play by default which is not recommended. If you use bespoke Schedules of Amendments then these will need to be revised.

What do you need to do?

Review your contracts now, in particular your clauses on payment, conditional payment, suspension and adjudication.
Train your staff on the new rules and the use of the new forms of notices. We can provide this training for you.

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