Does the Construction Act cover my supplier or sub-subcontractor?
A supply-only order can fall outside the Construction Act even when the materials are for a building site. A supply-and-install agreement needs a separate assessment.
Updated: . By Jack Butler-Kettle, Construction Claims Consultant.
The answer
Section 105 of the Housing Grants, Construction and Regeneration Act 1996 excludes the manufacture or delivery of specified components, materials and equipment unless the contract also provides for their installation. Other exclusions may also matter. Read the agreement actually made, including accepted quotations and incorporated terms; do not decide from an invoice heading or the word subcontractor. A contract outside the statutory regime can still contain payment procedures or an agreement to adjudicate. Ask your representative which rules and deadlines apply before issuing notices or withholding money. We reconcile the account and assess each disputed item under the identified agreement. Record any damages claim separately from the amount billed and check the right to deduct rather than assuming a net figure is payable.
Example
Illustrative example. The scenario and figures are invented.
The facts
A subcontractor has one order for fabricated brackets delivered to site and a separate agreement for installation.
What happens
- The actual parties, scope and incorporated terms of each agreement are established.
- The representative checks the payment and dispute provisions for each; the accounts and any performance allegations are reconciled separately.
The outcome
The response follows the identified agreements. Statutory payment notices or adjudication rights are not assumed to apply to both merely because both concern the same project.
Our Supplier and Sub-subcontractor Claims & Defence service assesses the account and evidence for claims in either direction, alongside your representative.