Building industry must prepare for Construction Contracts Bill

Published: 1st September 2008

A leading North West law firm is urging the construction industry to start preparing for the introduction of the much awaited Construction Contracts Bill.

Mace & Jones dispute resolution construction partner Ken Salmon said the Construction Contracts Bill is expected to come into force in the next six months four years after the Government announced a review of the Construction Act. It will replace the adjudication and payment law in the Housing Grants Construction and Regeneration Act 1996.

"In essence the bill is being driven by Government plans to improve payment practices and reform dispute resolution processes," he said. "But these are fundamental changes and firms should take legal advice to ensure they fully understand them and are prepared for them. Previously the Construction Act required a contract to be "in writing" before it qualified for adjudication and payment rules. The bill now says that all contracts are covered and there isn't a need to have them in writing. However, I would still strongly advise contractors to persist in getting contracts in writing. The payment procedure is also changing and although it should be more straightforward, the wording of the bill is less than clear and needs to be properly understood and prepared for."

Mr Salmon said the changes contained in the Bill were not as complicated as feared by some experts but predicted that like the Construction Act, the new act will take two years to 'bed in' before the industry is comfortable with the changes.

"Mace & Jones' dispute resolution department has an established track record in the construction sector with clients who are among the biggest names in the industry," he said. "We pride ourselves on providing a commercially aware, personal dedicated service which gives much better value than bigger law firms. We can advise employers, contractors and sub-contractors across Britain on this important piece of legislation. "

Construction sector firms wanting dispute resolution advice can contact ken.salmon@maceandjones.co.uk or any member of the Mace & Jones dispute resolution team in Liverpool: 0151 236 8989 Manchester: 0161 2154 0500 Knutsford: 01565 634234

The current Bill issued in July, which will only apply to contracts made after it comes into force, seeks comments by 12 September and as outlined in the Queen's Speech is due to be given approval later this session.