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Local Democracy, Economic Development and Construction Act 2009


312.Part 8 of the Act amends Part 2 of the 1996 Act. It is comprised of eight sections, a brief description of which follows:

  • Section 138 substitutes a new power allowing the Secretary of State and Scottish and Welsh Ministers to disapply any or all of the provisions of Part 2.

  • Section 139 removes the original limitation of Part 2 to contracts which were in writing;

  • Section 140 introduces a provision to facilitate the correction of clerical or typographical errors in an adjudicator’s decision;

  • Section 141 makes an agreement about the allocation of the costs of adjudication ineffective, unless certain conditions apply;

  • Section 142 addresses the issue of making periodic payments under a construction contract conditional upon obligations under another contract, and the issue of making the date a payment becomes due dependent upon the giving of a notice by the payer of the sum the payer proposes to pay;

  • Section 143 amends the original provisions relating to the notices which a payer gives of the sum which the payer proposes to pay and introduces provisions relating to the giving of notices by the payee;

  • Section 144 introduces (in most cases) a statutory requirement to pay sums specified in these notices;

  • Section 145 amends the original provisions relating to a contractor’s right to stop working when the contractor has not been paid.

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