The Local Democracy, Economic Development and Construction Act 2009 (Commencement No. 2) (Wales) Order 2011

Explanatory Note

(This note is not part of the Order)

So far as extending to England and Wales, this Order commences the provisions of Part 8 of the Local Democracy, Economic Development and Construction Act 2009 (c. 20) (“the 2009 Act”) in relation to construction contracts which relate to the carrying out of construction operations in Wales. It does not commence such provisions in respect of other construction contracts which are being commenced by separate commencement orders.

Part 8 of the 2009 Act amends Part 2 of the Housing Grants, Construction and Regeneration Act 1996 (c. 53) (“the 1996 Act”).

The provisions of Part 8 of the 2009 Act brought into force by this Order (where applicable in relation to Wales) are as follows:

• section 138 which substitutes a new power allowing the Welsh Ministers to disapply any or all of the provisions of Part 2 of the 1996 Act;

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

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

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

• section 142 which 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 which amends sections 109 and 110 of the 1996 Act and introduces provisions relating to the giving of notices by the payee;

• section 144 which introduces a statutory requirement to pay sums specified in these notices;

• section 145 which amends section 112 of the 1996 Act relating to a contractor’s right to stop working if the contractor has not been paid.

Article 3 brings into force the provisions of Part 8 of the 2009 Act on 1 October 2011.