Scheme for Construction Contracts meaning

Power purchase agreements (PPAs), and the consequent checklist considerations, will differ according to several elements, such as the generation technology adopted and, notably, whether any feedstock or fuel is necessary to run the finished plant. The nature of the deal—be it a short-term trading arrangement or a longer-term contract required to support financing—will likewise be influential. This Checklist proceeds on the basis of a ‘conventional’ PPA with a licensed supplier as the counterparty. Other forms exist, including corporate PPAs where the buyer is an end user, potentially linked to the plant by a private wire. For additional detail on corporate PPAs, see Practice Note: Corporate Power Purchase Agreements—an introduction to structuring power purchase arrangements between large energy users and remotely located generators. What is/check the duration of the agreement? Where a PPA is needed to underpin external financing for a new generating asset, the PPA term should, as far as practicable, ideally align with the tenor of any loans advanced to fund the scheme and the associated project...

Checklist This Checklist summarises practical measures a sub-contractor should consider if the main contractor on a construction project becomes insolvent during the course of the works. It assumes the sub-contractor is engaged on written terms by a main contractor for a defined sub-contract package, and that the main contractor has been making payments directly (i.e. there is no project bank account, escrow account, or alternative payment mechanism). For advice on identifying early signs of solvency concerns and protecting the sub-contractor’s position from the outset, see Practice Note: Construction insolvency—how to spot problems and how to protect yourself—sub-contractors. Where the main contractor on a construction scheme has gone insolvent, the sub-contractor should respond promptly and evaluate every practical and legal step available to safeguard its position. The actions a sub-contractor should contemplate are outlined below...

When a construction scheme involves third party stakeholders, it is usual for the delivery team to grant collateral warranties or confer third party rights benefiting those parties (refer to Practice Notes: Third party interests in construction projects, What are collateral warranties? and The Contracts (Rights of Third Parties) Act 1999 in construction contracts for further guidance)...

In this issue: Electricity and gas market regulation and licensing Networks and grid connections Renewable energy Capacity Market, balancing services and system flexibility Air emissions, efficiency and climate change International energy Daily and weekly news alerts New and updated content Dates for your diary Trackers Energy resources on Lexis+® Electricity and gas market regulation and licensing DESNZ has opened a consultation to strengthen Energy Ombudsman (EO) powers. It will concentrate on complaints from domestic energy suppliers, small enterprise complaints against non-domestic suppliers, and heat network complaints. Electricity and gas networks and third-party intermediaries will instead be consulted on separately. The plans include shortening the escalation period for complaints from eight to four weeks, allowing automatic compensation where EO decisions are not put into effect promptly, and granting the EO a statutory designation. DESNZ has also stated that Ofgem will regulate third‑party intermediaries, including energy brokers and price comparison sites, which have previously operated...

In this issue: Contract law Building safety Litigation Arbitration Tax for construction lawyers Standard form contracts Construction industry news Daily and weekly news alerts New and updated content Construction trackers Contract law Employer deemed out of time in issuing a notification on the Monday after a Sunday deadline (My Contracts v 74 Hamilton Terrace) In My Contracts Ltd v 74 Hamilton Terrace Freehold Ltd [2024] EWHC 2896 (TCC), the TCC issued a declaration at the contractor’s request concerning the construction of a clause that imposed a deadline for the employer to notify costs for which the contractor was responsible. The court concluded the employer missed the deadline by serving the notice on the Monday immediately after the final day for service, which had fallen on a Sunday. Central to the decision was that the clause made no provision for the period to be calculated by reference to ‘Business Days’. See News Analysis: Employer...

1st Formations Ltd v Lapp Industries Ltd [2025] EWHC 1526 (TCC) What are the practical implications of this case? This decision underscores that the courts will adopt a common-sense, pragmatic approach to the content of a payee’s notice under the HGCRA 1996 and Part II of the Scheme for Construction Contracts (the Scheme), resisting unduly narrow readings. So long as the notice makes sufficiently clear what sum is sought and the footing for the claim, the court will not seek to interfere or hunt for defects that might render the notice void or ineffectual. Here, the payee’s documents were plainly recognisable as an interim application; they identified the amount asserted as due and the basis upon which that figure had been worked out. The TCC further confirmed that a payment notice is not invalid merely because it asks for a figure below the amount stated as due. If a payment notice includes an incorrect due date, that is an issue for the other party to pick up in...

The general principles In an ideal scenario, the wording and provisions of contracts, deeds and other documents would be free of ambiguity, preventing misunderstanding when construing them; yet, in reality, and in practice, that is not invariably so. Consequently, the courts have fashioned methods or principles for construction and interpretation, including the interpretation of scheme deeds and rules in the pensions context. The principles governing the construction of documents are now well settled and uncontroversial. The courts’ objective is to construe documents by ‘common sense’ standards; they ultimately consider the ordinary and natural meaning of the language employed. These principles have been refined, built upon and expanded through a number of significant House of Lords and Supreme Court decisions. Judicial reasoning has built upon these foundations...

This Practice Note outlines the principal considerations when preparing contracts for schemes falling within the Building Safety Act 2022 (BSA 2022), and in particular the regime for ‘higher-risk’ buildings. It addresses a range of matters including the lengthened time limits for pursuing claims under the Defective Premises Act 1972 (DPA 1972), the extra regulatory oversight introduced for the pre-construction and construction phases and at completion, and the obligations imposed on ‘dutyholders’ under both BSA 2022 and related secondary legislation, as well as more generally under the Building Regulations 2010, as amended. Drafting points to consider where the employer is a member of the Responsible Actors Scheme are also covered. For a fuller summary of BSA 2022, see Practice Note: Building Safety Act 2022—key provisions and issues, and for guidance on which categories of buildings fall within the ‘Higher-Risk building’ regime, see Practice Note: Building Safety Act 2022—what is a higher-risk building? Limitation Periods BSA 2022 lengthened the window for commencing claims under DPA 1972, s 1(1), and under...

This Practice Note explores an adjudicator’s jurisdiction/authority, including how it comes about, whether an adjudicator can issue a binding ruling on their own jurisdiction, and the effect (if any) of mistakes of fact, errors of law or procedural irregularities on that jurisdiction. For guidance on contesting an adjudicator’s jurisdiction, see Practice Notes: Grounds for a jurisdictional challenge in an adjudication and Making a jurisdictional challenge in an adjudication. What is the adjudicator’s jurisdiction? The adjudicator’s jurisdiction (or authority) is, at its core, the power to decide matters concerning the parties’ rights. The adjudicator’s authority derives from: the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996) the contract between the parties, and/or the applicable adjudication rules, such as the Scheme for Construction Contracts ‘Adjudicator’s jurisdiction’ is also used to describe the scope of what they may determine, namely the dispute set out in the Notice of Adjudication. For example, an adjudicator lacks jurisdiction to decide that the employer must...

And in accordance with the [ insert [ ‘Scheme for Construction Contracts 1998’ OR relevant adjudication procedure chosen by the parties ] ] Between: [ Name of party 1 ] (the Referring Party) and [ Name of party 2 ] (the Responding Party) Introduction By virtue of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), together with [ [ ‘the Scheme for Construction Contracts (England and Wales) Regulations 1998’ (‘the Scheme for Construction Contracts 1998’)’ OR the alternative adjudication procedure selected by the parties ] ], this document concerns the dispute set out below. The Parties and Addresses for Service The Referring Party is [ Full Name of Party 1 ] (‘[ Abbreviated Name of Party 1 ]’) of [ address ]. The Referring Party is [ set out brief description of the work it undertakes, including the relevant type of work for the present dispute ]. The Responding Party is [ Full Name...

Yes, bank holidays are excluded when calculating the time period in an adjudication under the Scheme for Construction Contracts. The Scheme for Construction Contracts (the Scheme) sets out certain default rules governing the entitlement to start, and the practical management of, an adjudication process. Under section 108(5) of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), the Scheme’s terms are read into a construction contract where it omits, or conflicts with, any of the obligations in subsections 108(1) to (4)...