ARTICLE
11 November 2009

Construction Act Changes: House Of Lords Sign-Off

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CMS Cameron McKenna Nabarro Olswang

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Yesterday the House of Lords approved the amendments to the Local Democracy, Economic Development and Construction Bill made last month by the House of Commons.
United Kingdom Government, Public Sector

Yesterday the House of Lords approved the amendments to the Local Democracy, Economic Development and Construction Bill made last month by the House of Commons. (Click here for our Law-Now which includes a link to a Commons-approved summary of how the changes to the Housing Grants, Construction and Regeneration Act 1996 will operate and a link to how the amended Act would look, if the Bill is enacted and brought into force.) The Lords said nothing to shed any light upon how the new amendments may operate.

All that remains for the Bill to become an Act is royal assent, which is expected next Wednesday, 18 November, in the Queen's Speech. However, the changes will only affect construction contracts entered into after the new Act comes into force. It seems this will not happen before late 2010 to allow for consultation on changes to the statutory Scheme. The Scheme's rules are implied into construction contracts that do not make certain provisions for adjudication and payments, as the 1996 Act requires.

If the bringing into force of the 1996 Act's changes is to be delayed, it is unclear whether the government in power in late 2010 (given the intervening general election) will decide to bring them into force.

Reference: House of Lords' consideration of the House of Commons' amendments to the Local Democracy, Economic Development and Construction Bill

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

The original publication date for this article was 10/11/2009.

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