New Construction Act Update

Thursday 19th May 2011

In readiness for the Local Democracy, Economic Development and Construction Act 2009 (the "2009 Act") coming into force later this year, anticipated to be October 2011, the JCT has confirmed that it will shortly be publishing track change versions of the new 2011 suite of documents, showing the changes from the existing 2009 revisions to the 2005 edition.

The track change versions of the 2011 documents will be published during the week commencing 23 May 2011, and can be pre-ordered at www.jctcontracts.com.

These changes come as a result of Part 8 of the 2009 Act and the amendments this makes to Part 2 of the Housing Grants, Construction and Regeneration Act 1996 (the "1996 Act") currently in force. The main changes in the 2011 edition cover the new payment legislation, including payment terms and payment-related notices, but also cover other important updates such as:

• Amending the definition of insolvency in the termination section;
• Incorporating the revised terrorism cover provisions;
• Extending the definition of principal contractor under the CDM Regulations 2007 to include relevant functions under the Site Waste Management Plans Regulations 2008;
• Including references to the Bribery Act 2010; and
• Deleting reference to asbestos and fungal mould in the insurance provisions.

The JCT has confirmed that it will announce the publication date for the 2011 suite of documents once the effective date for the 2009 Act has been confirmed.

It is therefore advised that contractors and employers begin the process of updating their existing contract precedents and schedules of amendments to bring them in line with the 2009 Act as soon as possible. It is also important to be familiar with the intended changes that will impact on contracts once the 2009 Act comes into force. Should you require help with this, please contact s.homer@ashfords.co.uk.

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