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Amendments to the Housing Grants, Construction and Regeneration Act 1996 [2011]

Amendments to the Housing Grants, Construction and Regeneration Act 1996 contained in the Local Democracy, Economic Development and Construction Act 2009 become operative in England on 1 October 2011.

At this point in time Parliament has not given approval to the required revisions to the Scheme for Construction Contracts and a proposed exclusion to section 110(1A) of the amended Act. Both are to be laid before Parliament in September 2011 with the current intention of making them operative on 1 October 2011.
 
The most significant amendment to take effect on 1 October 2011 is probably that concerning the default provisions in the event of a failure to issue a payment notice, even if the sum due is £0.  We anticipate that the provisions will expose employers, contractors and subcontractors to considerable risk if they ignore the requirement to issue a payment notice.
 
Other amendments that will take effect in England 1 October 2011 include a change in the withholding notice procedures (now termed a “pay less” notices), conditional payments, allocation of adjudicator’s fees and expenses, the requirement for contracts to be in writing, the correction of errors by adjudicators and suspension of work in the event of a failure to pay a sum due and owing.
 
The effect of devolution is that the changes to the Housing Grants, Construction and Regeneration Act 1996 will not be consistent throughout England, Wales, Scotland and Northern Ireland. Amendments will also become operative in Wales on 1 October 2011.
 
Kerrigans are holding a series of Breakfast Seminars in Autumn 2011 to help you identify the changes affecting your business.  We can also provide in-house training to ensure that your staff are aware of the implications of this new legislation.
 
Further further information please contact Melanie Roberts on 0151 647 8862 or melroberts@kerrigans.net.
 
The information provided in this article is not a comprehensive analysis of the law and must not be treated as a substitute for legal or professional advice.  To the extent permitted by law, Kerrigans will not accept or otherwise be held liable for any loss or damage incurred in relying upon the contents of this article. Should you require any legal or professional advice about any of the topics covered in this article we recommend that you contact Kerrigans. 

07/12

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