Sir Michael Latham has been appointed to review Part II of the Housing Grants Construction and Regeneration Act 1996 (The Construction Act). The appointment follows the Government's budget commitment to review the adjudication and payment provisions in the Act following concerns expressed in the industry about unreasonable delays in payment.
Construction minister Nigel Griffiths said: "The review underlines the Government's promise to address the problems of disputed, late and non-payment, and will provide assurances that this legislation is working as effectively as possible."

Latham said: "I am keen to set the ball rolling. I have invited all the major construction representative organisations to nominate members for a review group and have asked them to write to the DTI outlining their concerns and offering possible solutions in advance of a first meeting."

Part II of the Construction Act was introduced in 1996 to improve payment practices by ensuring contracts:

  • state what will be paid and when;
  • provide for stage payments where the contract period is over a minimum term;
  • allow a party to refer disputes under the contract for decision by a 28-day adjudication process – a quick process ending in a decision until the dispute is finally decided in court or by agreement.

Source

Electrical and Mechanical Contractor