Improving payment practices in the construction industry

Draft Construction Contracts Bill

BERR has published a draft Construction Contracts Bill to amend Part 2 of the Housing Grants, Construction and Regeneration Act 1996 (“the Construction Act”). The clauses have been developed in the light of two public consultations in 2005 and 2007 and numerous discussions with industry stakeholders.

The Draft Legislative Programme for 2008/09 – Preparing Britain for the Future - published in May this year, announced that Government intends to include these clauses in the Community empowerment, housing and economic regeneration (CEHER) Bill.

To help inform consideration of the draft clauses BERR has also in parallel published a detailed Explanatory Note. We are particularly interested to receive comments about how effectively the drafting of the clauses achieves its purpose. We should be grateful for any comments you may have by Friday 12 September 2008.

Please contact the BERR publications order line on: 0845 015 0010 for hard copies of the published draft Bill quoting URN 08/1121.

Analysis (2008)

BERR and the Welsh Assembly Government have jointly published the analysis of responses to the 2007 Consultation on proposals to amend Part 2 of the Housing Grants Construction and Regeneration Act 1996 and Scheme for Construction Contracts (England and Wales) Regulations 1998.

Please contact the BERR publications order line on: 0845 015 0010 quoting URN 08/1094 for a hard copy.

Second Consultation (2007)

DTI launched the second joint consultation with the Welsh Assembly Government to amend Part II of the Housing Grants Construction and Regeneration Act 1996 and Scheme for Construction Contracts (England and Wales) Regulations 1998. The initial consultation process identified issues and possible solutions on specific proposals. The amendments in the second consultation sought to improve transparency and clarity in the exchange of information relating to payments, thereby enabling parties to construction contracts to manage cash flow better; and to encourage parties to resolve disputes by adjudication.

Consultation (2005) 

DTI and the Welsh Assembly Government’s joint consultation on proposals to amend Part II of the Housing Grants Construction and Regeneration Act 1996 and Scheme for Construction Contracts (England and Wales) Regulations 1998. Please contact the BERR publications order line on telephone: 0845 015 0010 quoting URN 05/851 – English version or URN 05/851W – Welsh version.

Analysis (2006)

Analysis of the 2005 Consultation on proposals to amend Part II of the Housing Grants Construction and Regeneration Act 1996 and Scheme for Construction Contracts (England and Wales) Regulations 1998. Published jointly by the DTI and the Welsh Assembly Government. Please contact the BERR publications order line on telephone: 0845 015 0010 quoting URN 06/633 – English version or URN 06/633W – Welsh version.

Consultation responses

We received 356 responses to the 2005 Consultation (22 March until 21 June 2005). A list of responses is available on the right. If you would like to view the responses in full, a CD ROM is available from the publications order line (0845 015 0010).

DTI Consultation Events

The DTI held two consultation events on June 1st 2005 and February 14th 2006.  The outputs of each event have been combined into two documents.

Sir Michael Latham's Review of the Construction Act (17 September 2004) - on 17 September 2004, Sir Michael Latham presented his report of the review of the Construction Act to Construction Minister Nigel Griffiths. Further details and documents relating to the review are available via the links on the right.

 

Adjudication 

"Guidance for Adjudicators"
July 2002, published by the Construction Umbrella Bodies Adjudication Task Group c/o Construction Industry Council (CIC).  Copies can be downloaded and ordered from the CIC's website. In addition you may find some of the related information available from the links to the right useful. (URN 02/1585)

"Users Guide to Adjudication"
Published by the Construction Umbrella Bodies Adjudication Task Group to provide accessible and accurate guidance for users of the construction adjudication process. It follows the publication of 'Guidance to Adjudicators' in July 2002.  (URN 03/803)