Paul Brampton and Steven Hayward from the construction and engineering team at IBB solicitors presented the October 2011 changes to the Construction Act to a full house at the London Capital Club on 13 September 2011. The presentation included a look at the 'old' Construction Act and a more detailed consideration of the new regime and its practical implications. The presentation was very well received.We have lived with the Housing Grants Construction and Regeneration Act 1996 (colloquially "the Construction Act") for over a decade. In 1998, when the law was introduced, the regime seemed quite alien and difficult to operate - Building Magazine (17/4/98) described it as “the most significant piece of legislation to hit the industry for decades” - but we all adapted our working practices accordingly with the result that it has become second nature to work within the confines of that legislation now.
Times change. Part 8 of the Local Democracy, Economic Development and Construction Act 2009 amends the Constriction Act. It applies to all contracts entered into on or after 1st October 2011 in England and Wales . New rules make it more difficult to hide behind the terms of a contract to delay making payments whilst at the same time enhancing the payee's right to suspend works in the event of non-payment.
Some commentators welcome the new rules as a victory for smaller companies protecting them from employers who stifle cash flow causing many smaller firms to go bust. Others say the changes are unnecessary adding to administration when the industry is on its knees and new building orders are at their lowest since the 80s. Seeking to avoid the new legislation, some construction companies are racing to get contracts signed ahead of October 1st, even if the building work is not due to start for several months.
Post presentation comments included
"The evening was very informative. The handouts produced ... were excellent"
"Made a somewhat dry topic interesting. Thank you"
"It was the first time I attended an LCEC event. It was informative, professionally presented, pleasant and a relaxed venue, above my expectations"
"It was combination of learning and networking"
"Excellent handouts - among the best I've received from an event"
