Housing Grants, Construction and Regeneration Act 1996
View on legislation.gov.ukLast amended by Local Democracy, Economic Development and Construction Act 2009 in 2009. Part 8 amended the 1996 Act to extend the right to adjudication to oral construction contracts, reform payment notice requirements, and restrict the use of suspension.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Summary
Part II of this Act (commonly known as the 'Construction Act') revolutionised the UK construction industry by introducing a statutory right to adjudication and a right to interim payment for all parties to construction contracts. It addressed the longstanding problem of late and non-payment in the industry and established adjudication as a rapid dispute resolution mechanism.
Key Points
- Right to refer any dispute under a construction contract to adjudication at any time (s.108)
- Adjudicator must reach a decision within 28 days (extendable to 42 days) (s.108(2))
- Right to stage payments for any construction contract lasting more than 45 days (s.109)
- Prohibition of pay-when-paid clauses except on insolvency (s.113)
- Payment notices and pay less notices required (ss.110–111)
- Applies to construction operations in England, Wales, and Scotland (s.104)
Parts & Sections
Amendments History
2009 — Local Democracy, Economic Development and Construction Act 2009
Part 8 amended the 1996 Act to extend the right to adjudication to oral construction contracts, reform payment notice requirements, and restrict the use of suspension.