Powered by Lexis+®
Jurisdiction(s):
United Kingdom
CASE STUDY

“Because of the pure breadth and depth of black letter law research and practical guidance that LexisNexis provides, we don't have to rely on counsel as much as perhaps firms that don't use LexisNexis.”

KaurMaxwell

Access all documents on Construction Act

Construction Act meaning

/kənˈstrʌkʃ(ə)n/ /akt/
What does Construction Act mean?
Construction Act is industry shorthand for the statutory regime that mandates payment and adjudication provisions in construction contracts. In England & Wales and Scotland it refers to Part II of the housing grants, construction and regeneration act 1996, as amended by the Local Democracy, Economic Development and Construction Act 2009, and supported by the Scheme for Construction Contracts Regulations. Core features include: a right to statutory adjudication at any time; requirements for payment notices and pay less notices; entitlement to interim payments; prohibition of “pay when paid” clauses (save for upstream insolvency); a right to suspend for non‑payment; and implication of Scheme terms where a contract is non‑compliant. In Northern Ireland, Construction Act commonly denotes the Construction Contracts (Northern Ireland) Order 1997 (as amended) and its Scheme, which broadly mirror the GB framework. In Ireland, the term usually refers to the Construction Contracts Act 2013, which also provides statutory adjudication and payment protections, though procedures, notices and timescales differ. The expression is descriptive rather than a defined term. The scope of “construction contracts” and exclusions (for example residential occupiers and certain process engineering operations) depend on the relevant statute and jurisdiction. Practical significance: it underpins prompt payment and rapid dispute resolution across...
Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.

View the related Checklists about Construction Act

CHECKLISTS
Suspending performance for non‑payment under the HGCRA 1996: section 112 rights, notice requirements, scope, costs, completion impact and pre‑2011 differences

This Checklist reviews the entitlement to suspend under the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), and the matters that ought to be carefully considered before any party opts to suspend carrying out its obligations and duties under a construction contract. Is there a general common law right to suspend a contract? No. At common law, a party to a contract has no general right to pause or withhold ongoing performance of contractual duties when the other party is in breach, unless the breach is sufficiently serious to constitute a ‘repudiatory breach’, thereby permitting the innocent party to rescind or bring the contract to an end (see Practice Notes: Termination of a construction contract—Common law termination and Repudiation of contract). How does the right to suspend arise in a construction contract?...

Read More Right Arrow
CHECKLISTS
Responding to a Notice of Adjudication: jurisdictional challenges, procedural pitfalls, participation options, timescales and defence preparation checklist

Created in collaboration with 4 Pump Court. This Checklist highlights several principal matters a responding party ought to review on receiving a Notice of Adjudication. That review includes assessing whether grounds exist for a jurisdictional objection—if they do, the responding party must take particular actions so as not to forfeit its ability to advance the objection (either within the adjudication or later at enforcement). Further direction on jurisdiction can be found in Practice Notes: Grounds for a jurisdictional challenge in an adjudication and Making a jurisdictional challenge. Are there possible grounds to dispute the adjudicator’s jurisdiction? Initial points to consider include: the contract: is there a contract between the parties to the adjudication and has it been properly identified in the Notice of Adjudication? See Practice Note: The Notice of Adjudication (What should the Notice of Adjudication contain?) have the correct contracting parties been stated in the Notice of Adjudication? entitlement to adjudicate: ...

Read More Right Arrow
CHECKLISTS
Construction adjudication: pre-referral checklist under the HGCRA 1996—entitlement, crystallisation, scope, parties, procedure, evidence and practical readiness

This checklist flags matters often needing attention before a party refers a dispute to adjudication. It also points to detailed, in-depth guidance on the various topics and identifies the relevant provisions of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996) where appropriate, as well. Legal matters Confirm there is a lawful basis to refer the dispute to adjudication, including whether it has crystallised and falls within the class of disputes that may properly be adjudicated. Entitlement to refer a dispute to adjudication The referring party must hold a legal entitlement to refer a dispute to adjudication. That entitlement may arise under statute, under the contract, or by an ad hoc agreement between the parties. Accordingly, consider the following: Is there a statutory right—does the parties’ contract meet the definition of ‘construction contract’ under HGCRA 1996, s 104 and is it not otherwise excluded from its scope? See Practice Note: What is a construction contract under the...

Read More Right Arrow

View the related Flowcharts about Construction Act

FLOWCHARTS
NEC3/NEC4 Engineering and Construction Contract: Defects Process Flowchart (identification, notification and correction)

The Retained EU Law (Revocation and Reform) Act 2023 (REUL(RR)A 2023) confers a suite of legislative powers, allowing the relevant national authorities to reshape retained EU law (REUL) by making secondary legislation to amend, revoke, restate and/or replace REUL and assimilated law. Its principal powers are located in REUL(RR)A 2023, ss 11–16. The core procedural obligations (including parliamentary scrutiny routes) for these instruments appear in REUL(RR)A 2023, s 20 and Schs 4–5. REUL(RR)A 2023 sifting process—background Under REUL(RR)A 2023, before specified statutory instruments (referred to here as ‘REUL reform SIs’) are formally presented to Parliament, they must first undergo a preliminary sifting exercise to confirm the suitable parliamentary procedure. Details of the sifting mechanism are set out in REUL(RR)A 2023, Sch 5 Pt 2, para 6...

Read More Right Arrow
FLOWCHARTS
JCT SBC 2011 Extension of Time Claims—Flowchart (Archived)

This flowchart outlines the method for assessing whether or not a defendant possesses a criminal lifestyle, for the purposes of confiscation proceedings pursuant to the Proceeds of Crime Act 2002...

Read More Right Arrow
FLOWCHARTS
Flowchart: process to exercise step-in rights under a collateral warranty

The defined terms in the flowchart shall have the following meaning: Appointed Representative Regulations — the Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001, SI 2001/1217 Business Order — the Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001, SI 2001/1177 Exemption Order — the Financial Services and Markets Act 2000 (Exemption) Order 2001, SI 2001/1201 Non-Exempt Activities Order — the Financial Services and Markets Act 2000 (Professions) (Non-Exempt Activities) Order 2001, SI 2001/1227 PRA-regulated activities — denotes regulated activities designated as PRA‑regulated activities under the Financial Services and Markets Act 2000 (PRA‑regulated Activities) Order 2013, SI 2013/556 RAO — the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 UCITS qualifier — carries the meaning attributed to it in the Glossary of the Financial Conduct Authority (FCA) Handbook To determine whether an activity is regulated, follow the flowchart below. Click below to view or print...

Read More Right Arrow

View the related News about Construction Act

NEWS
English Commercial Court grants anti-suit injunctions to uphold Paris-seated ICC arbitration and restrain Russian proceedings—Bayerische Landesbank v Ruschemalliance

Bayerische Landesbank and another v Ruschemalliance LLC [2024] EWHC 1822 (Comm) What are the practical implications of this case? In keeping with comparable determinations, this judgment succinctly sets out the jurisdictional thresholds and principal considerations the court applies when evaluating applications for anti‑suit injunctions. It underscores the judiciary’s practical bent and operates as a constructive illustration of inter‑court co‑ordination, projecting a clear signal where numerous contests flow from identical underlying events, even though such matters are dealt with at varying moments and tiers of the court structure. In sum, the outcome reasserts the English courts’ steadfast commitment to upholding arbitration, including in circumstances where the arbitral seat is situated in a foreign state. What was the background? In 2021, the defendant, Ruschemalliance LLC (“RCA”), a Russian entity, entered into two Engineering, Procurement and Construction agreements for the development of liquefied natural gas and gas processing plant facilities in Russia. The obligations owed by RCA’s counterparties, the German companies Linde GmbH and Renaissance Heavy Industries LLC (together,...

Read More Right Arrow
NEWS
Construction law weekly: TCC on adjudication settlement scope and BLO procedure; Welsh building and infrastructure reforms; CPR PD updates; CLC letter; HMRC CIS changes; new JCT sub-contract precedents

In this issue: Adjudication Building safety Planning Litigation Construction industry news Daily and weekly news alerts New and updated content Construction trackers Adjudication Contractual interpretation in adjudication disputes (Dawnvale v Hylgar) In Dawnvale Cafe Components Ltd v Hylgar Properties Ltd [2024] EWHC 1199 (TCC), the court reviewed the reach of a Tomlin Order/Settlement Agreement concluded after settling enforcement of an adjudicator’s decision, and assessed whether its wording barred a proposed second adjudication. It also had to determine if that proposed reference raised a dispute already resolved by the first adjudication. This ruling underlines the need for exact drafting in settlement agreements and the prospect of further claims where matters are not expressly concluded. Written by Michael O’Connor, partner at Charles Russell Speechly LLP. See News Analysis: Contractual interpretation in adjudication disputes (Dawnvale v Hylgar). Building safety Building liability orders: court gives guidance on procedures in first reported case (Wilmott Dixon v Prater) ...

Read More Right Arrow
NEWS
Construction law and policy update—12 December 2024: building safety, Welsh building control, Scottish cladding commencement, dispute boards survey, arbitration ruling, environmental and EPB consultations, infrastructure plan and skills initiatives

In this issue: Building safety Building regulations Alternative dispute resolution Arbitration Environmental issues Projects Construction industry news Daily and weekly news alerts Construction trackers Building safety CLC announces restructure of ICSG The CLC has set out a reorganisation of the Industry Competence Steering Group (ICSG) to enhance competence and safety standards across the built environment sector. Under this strategic change, the ICSG will become a formal working group within the Building Safety Regulator’s Industry Competence Committee. The refreshed framework features sector-led groups, key topic groups and working groups, informed by contributions from more than 60 professional and trade bodies and 1,500 individuals, reinforcing the drive for improved standards. See: LNB News 09/12/2024 61. Housing (Cladding Remediation) (Scotland) Act 2024 (Commencement) Regulations 2024 SSI 2024/370 These regulations designate 6 January 2025 as the appointed day on which all provisions of the Housing (Cladding Remediation) (Scotland) Act 2024 not already commenced will come into...

Read More Right Arrow

View the related Practice Notes about Construction Act

PRACTICE NOTES
Singapore competition enforcement: CCCS closed behavioural cases under sections 34 and 47 of the Competition Act—2018–2025 tracker

This table summarises all completed investigations by Singapore’s competition authority (the Competition and Consumer Commission of Singapore—the CCCS) into alleged cartels, anti-competitive agreements and abuses of dominant positions since 2018. Note—only investigations that have been made public are included in this table. 2025 Investigations under section 34 of the Competition Act Remittance services — ZGR Global; Hanshan Issues: Restrictive agreement—information exchange Developments: Decision finding infringement—31/07/2025; penalties totalling $5.36m imposed Contracting — Trust-Build Engineering & Construction Pte. Ltd; Hunan Fengtian Construction Group Co. Ltd Issues: Restrictive agreement—bid rigging Developments: Decision finding infringement—23/05/2025; penalties totalling $4.6m imposed Investigations under section 47 of the Competition Act The CCCS has not yet issued any decisions under section 47 in 2025 2024 Investigations under section 34 of the Competition Act Remittance services — ZGR Global Pte Ltd; Hanshan...

Read More Right Arrow
PRACTICE NOTES
UK Construction Products Regime: UKCA/CE marking with continued CE recognition, designated standards, conformity assessment, enforcement, GB-NI divergence, and reforms post-Grenfell under the Building Safety Act 2022

Why are construction products regulated? Construction products are regulated to: confirm that any item entering the market meets all legal obligations, and build trust among consumers, public authorities and manufacturers regarding product conformity What sort of products are affected? ‘Construction product’ means any product or kit manufactured and placed on the market for permanent incorporation in construction works, or their parts, where its performance affects how those works satisfy the basic requirements. This includes items such as doors, windows, shutters and gates, membranes, thermal insulation, chimneys and flues, sanitary appliances, fire alarms, flooring, fire-retardant products, space heating appliances, power cables, glass, fixings, and many others. Key definitions Placing on the market ‘Placing on the market’ is the first time a construction product is made available on the GB market, as described in UK government guidance. Making available on the market ‘Making available on the market’ means any supply of a construction product for distribution or use...

Read More Right Arrow
PRACTICE NOTES
UK competition dawn raids tracker (2000–2024): CMA and concurrent sector regulators’ public announcements under the Competition Act 1998 and Enterprise Act 2002

This table summarises all public announcements made by the CMA and concurrent sector regulators of dawn raids that have been carried out into alleged breaches of competition law since 2000 under the Competition Act 1998 and/or the Enterprise Act 2002 2024: Construction (roofing services) — companies not identified; CMA; suspected restrictive agreements—bid rigging; raid in 2024. 2021: Leicester City FC merchandise — CMA; alleged restrictive agreements—price collusion; raid in 2021. 2019: Supply of construction services — CMA; collusion—bid rigging; raid in 2019. 2019: Guitars (50565-3) — Fender Musical Instruments Europe Ltd; CMA; restrictive agreements—RPM; raid on 26/03/2019. 2018: Casio (digital pianos/keyboards) (50565-2) — CMA; restrictive agreements—RPM. Headings: 2024 — Case name, companies under investigation and industry; Competition authority; Issues; Date of dawn raid. 2021 — Case name, companies under investigation and industry; Competition authority; Issues; Date of dawn raid. 2019 — Case name, companies under investigation and industry; Competition authority; Issues; Date of dawn raid. 2018 — Case name, companies...

Read More Right Arrow

View the related Precedents about Construction Act

PRECEDENTS
Precedent JCT Standard Building Sub-Contract 2024: Agreement, Particulars and Amendments (Procurement Act 2023, Building Safety/HRB, BIM, Bonds, Warranties) — England and Wales

Agreement concerning [ insert brief details of the works/project ] at [ insert address of works ] (incorporating, among other things, the JCT Standard Building Sub-Contract Agreement 2024 (SBCSub/A 2024) and the JCT Standard Building Sub-Contract Conditions 2024 (SBCSub/C 2024), each as amended and supplemented as set out in this Agreement and in the Schedules to it). This Agreement is dated the [ insert number ] day of [ insert month ] 20[ insert year ] Parties [ insert name of the Contractor ] (company registration number [ insert number ]), whose registered office is at [ insert address of the Contractor ] (“the Contractor”) [ insert name of the Sub-Contractor ] (company registration number [ insert number ]), whose registered office is at [ insert address of the Sub-Contractor ] (“the Sub-Contractor”) Now it is agreed that: 1 Interpretation In this Agreement, words and expressions carry the meanings respectively attributed to them in the JCT SBCSub/A 2024 and...

Read More Right Arrow
PRECEDENTS
Construction Adjudication Referral Notice Precedent (Housing Grants, Construction and Regeneration Act 1996)

In respect of the Housing Grants, Construction and Regeneration Act 1996, and in respect of an adjudication before [ Name of Adjudicator ] between [ Name of party 1 ], the Referring Party, and [ Name of party 2 ], the Responding Party Referral notice Introduction In accordance with the Notice of Adjudication dated [ date ], this document serves as the Referring Party’s Referral Notice. This Referral Notice is issued with a Bundle that contains a timeline of events alongside pertinent documents: 2.1 chronology of relevant events at tab [ insert ] 2.2 [ insert ] at tab [ insert ] 2.3 [ insert ] at tab [ insert ] The Parties 3 The Referring Party is [ Full Name of Party 1 ] ([ ‘Abbreviated Name of Party 1’ ]) of [ address ], and [ provides OR undertakes ] [ insert services/role Party 1 carries...

Read More Right Arrow
PRECEDENTS
Schedule of Employer‑Favouring Amendments to JCT SBC/AQ 2016 (England): Building Safety Act/HRB, Dutyholder and CDM compliance; design liability; collateral warranties; insurance; payment; insolvency; adjudication (arbitration removed)

The Contract comprises the completed Standard Building Contract With Approximate Quantities 2016 published by the JCT subject to the following amendments: This Contract adopts JCT SBC/AQ 2016 with extensive modifications to reflect design responsibility, building safety and commercial controls. Recitals: Contractor to provide a master programme and Schedule of Information Requirements; confirms site due diligence and accepts full CDP design liability. Articles: Dutyholder Regulations added; Tender Price covers Principal Contractor duties; arbitration removed; Schedule of Amendments prevails; strict protection of Third Party Agreements. Definitions/governance: new and revised terms (Building Safety Regulator, HRB, Practical Completion, Copyright Material, Design Sub‑contractors, Dutyholder Regulations); several deletions; English court jurisdiction. Design/materials/information: skill‑and‑care design and coordination; only new, compliant, non‑deleterious materials; golden thread storage; monthly programme reporting; site risks at Contractor’s risk. Procedures/controls: tighter instruction, testing, defects and as‑built duties; enhanced confidentiality and IP licences; HRB assistance; CDM/Dutyholder competency confirmations. Sub‑contracting/rights: prescribed sub‑contracts, insurances and delivery of collateral warranties/third‑party rights; limits on assignment. Payment/commercial: 28‑day final...

Read More Right Arrow

View the related Q&As about Construction Act

Q&As
Section 73 TCPA 1990: Mid‑construction implementation—does grant and developer confirmation end the original permission?

Pinpointing when a planning permission issued under section 73 of the Town and Country Planning Act 1990 (TCPA 1990) takes effect, in circumstances where works have already begun, is frequently hard to assess. Consents made under TCPA 1990, s 73 constitute a fresh planning permission, leaving the initial permission untouched and unchanged, and enabling the developer to decide which permission it prefers to put into effect in each case...

Read More Right Arrow
Q&As
Road maintenance: 'construction operations' under HGCRA 1996?

Such works may fall under section 105(1)(b) of the HGCRA 1996 Such works may fall within section 105(1)(b), which treats road maintenance as a construction operation covering the construction, alteration, repair, maintenance, extension, demolition or dismantling of works forming, or to form, part of land, including walls, roadworks, power lines, electronic communications apparatus, runways, docks, harbours, railways, inland waterways, pipelines, reservoirs, water mains, wells, sewers, industrial plant, and installations for land drainage, coast protection or defence. Alternatively, section 105(1)(e) catches operations integral to, preparatory for, or rendering complete those works, including site clearance, earth-moving, excavation, tunnelling, laying foundations, erecting, maintaining or dismantling scaffolding, site restoration, landscaping, and providing roadways and other access. No specific authority concerns these works, yet courts have often held that less orthodox activities are construction operations, for example: Baldwins Industrial Services plc v Barr: crane with driver hire held integral, preparatory to, or completing works under sections 105(1)(a) and (e). Some contracts are excluded from being a ‘construction...

Read More Right Arrow
Q&As
Restrictive covenant in sale contract only: binding on purchaser?

Meaning of ‘covenant’ Definition and construction of covenant: Halsbury’s Laws of England [448] states that a covenant is a promise contained in a deed, binding the parties, or any one of them, to do, or to refrain from doing, a particular act. The term may nonetheless be read so as to include provisions in an agreement under hand where, absent such construction, the wording would be deprived of effect; for example, where a document refers to the “covenants” of a lease that is not executed by deed...

Read More Right Arrow