Amendments to draft Construction Contracts Bill

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by Lin Freestone

In July, the Department for Business Enterprise & Regulatory Reform published the draft Construction Contracts Bill and explanatory notes.

Amendments to the draft bill have been made and comments to these are sought by 12 September. As outlined in the Queen’s Speech, the Bill is due to be given approval later this session.

The Bill was developed after lengthy public consultation conducted since the government first announced a review of the construction provisions in Part 2 of the Housing Grants, Construction & Regeneration Act 1996.

It is expected that the Bill will replace the adjudication and payment law in the Housing Grants Construction Act within the next six months.

The construction industry is being urged to start preparing for the introduction of the Bill, particularly in respect of payment practices in the construction industry.

Previously, the Construction Act required a contract to be in writing before it qualified for adjudication and payment rules. The Bill now says that all contracts are covered and there isn’t a need to have them in writing.

Some legal experts are advising, however, that contractors should continue to get contracts in writing.