The Construction Contracts (Scotland) Exclusion Order 2011

EXPLANATORY NOTE

(This note is not part of the Order)

Part II of the Housing Grants, Construction and Regeneration Act 1996 (“the Act”) makes provision in relation to the terms of construction contracts. Section 106A of the Act confers power on the Scottish Ministers to exclude descriptions of contracts from the operation of any or all of Part II. This Order excludes a type of contract from the operation of one such provision.

That provision is section 110(1A) of the Act, pursuant to which the requirement that contracts provide an adequate mechanism for establishing what payments become due and when under the contract is not satisfied if payment is conditional on obligations being performed under another contract. Agreements entered into under the private finance initiative are themselves already excluded from the operation of the entirety of Part II. Article 2 of this Order excludes first tier sub‑contracts entered into under an excluded private finance initiative contract from the operation of section 110(1A) of the Act.

A Business and Regulatory Impact Assessment to the effect which this Order is likely to have on business costs has been carried out and is available on the Scottish Procurement and Commercial Directorate’s website at www.scotland.gov.uk/procurement.