Construction Update - 27th July 2011

Construction Act Changes in force from 1 October 2011  

Is your business ready?  

Changes to the Construction Act will come into force on 1 October 2011.

The changes will relate to the following:

• A "construction contract" is no longer required to be in writing;   
• Changes to payment regime, including provision for payment notices to be served by payer and payee;     
• Withholding notices replaced by "Pay less" notices;     
• Enhancement of statutory rights to suspend performance for non-payment - Contractor can suspend any or all of his obligations and is entitled to recover costs reasonably incurred if the right is exercised; and     
• Adjudication - contractual provisions made in advance of adjudication determining which party will be liable for the costs of the adjudication will be invalid.

Seminars and training   

We will be running seminars this Autumn covering the changes and the implications for construction businesses.  If you would like to discuss with us the possibility of a bespoke seminar for your organisation please contact Sarah Ziff on 01392 333887 or s.ziff@ashfords.co.uk

Contract review

We recommend that all contracts and sub-contracts are reviewed and amended without delay to ensure that they will be compliant as of 1 October 2011.  We are operating a fixed fee "Review and Amend" service.  Please let us know if you would like further details.

Ashfords LLP is regulated by the Solicitors Regulation Authority.  The information in this note is intended to be general information about English law only and not comprehensive.  It is not to be relied on as legal advice nor as an alternative to taking professional advice relating to specific circumstances.