The UK's Construction Act Gets Its First Face-Lift


The Housing Grants, Construction and Regeneration Act (the "Act") was enacted in 1996 and came into force in May 1998. The Act was a long awaited attempt to address some of the fundamental problems facing the construction industry, particularly non-payment.

More than ten years later and after more than five years of consultation, the Local Democracy, Economic Development and Construction Act 2009 ("LDEDCA") received Royal Assent on 12 November 2009. Part 8 of LDEDCA will amend the adjudication and payment provisions in Part II of the Act (the "amended Act") when it comes into force on 1 October 2011 in England and Wales and on 1 November 2011 in Scotland. Similar changes will be made in Northern Ireland through the Construction Contracts (Amendment) Act (Northern Ireland) 2011, but no firm date has yet been set for when this act will come into force.

This client alert is intended to provide a brief overview of the key changes.

Please see full alert below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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