Local Democracy, Economic Development and Construction Act 2009

Summary

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.