What UK Housing Grants, Construction and Regeneration Act 1996 (Part II): Construction Contract Adjudication and Payment requires
Part II of the Housing Grants, Construction and Regeneration Act 1996 (commonly the Construction Act) governs construction contracts in the United Kingdom, giving parties a statutory right to adjudication and a statutory payment framework that cannot be contracted out of, as amended by the Local Democracy, Economic Development and Construction Act 2009. Section 104 defines a construction contract and section 105 defines construction operations, while section 106 excludes a contract with a residential occupier and section 106A confers a power to disapply provisions of the Part. Section 108 confers the right to refer a dispute under a construction contract to adjudication at any time, with a decision normally within 28 days. The payment regime is mandatory: section 109 confers an entitlement to stage (interim) payments, section 110 requires an adequate mechanism for determining what and when payments become due, sections 110A and 110B require payment notices, section 111 requires payment of the notified sum unless a valid pay less notice is given, section 112 confers a right to suspend performance for non-payment, and section 113 prohibits conditional payment (pay-when-paid) provisions except on the third party's insolvency. Section 114 provides for the Scheme for Construction Contracts, which supplies the default terms where a contract does not comply. The Act is the legal foundation of construction-industry cash flow and rapid dispute resolution in the UK.
Pillar: Construction & Real Estate · Authority: UK Parliament · Version: 1.0.0 · Last updated:
Primary source: https://www.legislation.gov.uk/ukpga/1996/53/contents
SHA-256 integrity: 7467ba3c3ce2d5111960e9a2d6cedf3d8c5b8e5a77583bee6715e5803ce0a246
Primary Citations — 8 traced to source
- Housing Grants, Construction and Regeneration Act 1996, section 104 - construction contracts.
- Housing Grants, Construction and Regeneration Act 1996, section 105 - meaning of construction operations.
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