摘要: |
Christmas is filled with many traditions and reading articles on the Housing Grants, Construction and Regeneration Act 1996 is not one of them - but it might be an unexpected conversation changer and a welcome distraction when discussions between mum and auntie Marge start to get heated over the Christmas dinner. The Housing Grants, Construction and Regeneration Act 1996 (the Act) was a result of Sir Michael Latham's 1994 report Constructing the Team. Sir Michael had identified a number of issues that affected the construction industry - particularly in relation to poor payment practices and the Act was the legislative outcome of his report. It came into force in May 1998 and has evolved as a consequence of subsequent legislation since that date. It gives parties certain rights and obligations in regard to payments and dispute resolution in construction contracts, in particular: 1. the entitlement of parties to take disputes to adjudication (i.e. reference of the dispute by a (paid) adjudicator to determine the disputes - which in theory should provide quicker resolution) 2. the right for payees to be entitled to a certain payment mechanism 3. the right for payees to suspend performance in instance of nonpayment by the payer. Construction contracts are specifically defined in the Act. Contracts that do not meet these criteria will not be subject to the Act's provisions. |