Housing Grants, Construction and Regeneration Act 1996

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