Does the Construction Act apply to my contract?
It covers most UK subcontracts for construction work, but some contracts are left out, so check yours before you rely on it.
Updated: . By Jack Butler-Kettle, Construction Claims Consultant.
The answer
The Act is the Housing Grants, Construction and Regeneration Act 1996, and our guide to the Construction Act explains what it gives you. Whether it applies depends on the work, the parties, where the job is, when the contract was made and which legislation applies. Some contracts are excluded. The best known is a contract with a homeowner for work on their own home, which section 106 takes out of the Act's payment and adjudication rules. Other exclusions need care too, as do mixed work and professional appointments. Being outside the Act does not leave you with no rights. Your contract's own payment terms, any agreed dispute process and other legal protections still apply. So check where the work is, who each party is, what work is included, and what payment and dispute terms were agreed. Do that before you rely on a default notice or an adjudication timetable.
Example
Illustrative example. The scenario and figures are invented.
The facts
You want to know whether the Construction Act applies to your subcontract before you rely on its payment and dispute rules. The answer depends on the facts of the job, not on how the job looks.
What happens
- You note where the work is and who each party is.
- You note what work is included, and which payment and dispute terms were agreed.
- Those facts, not assumptions, are used to decide whether the Act applies.
The outcome
The answer rests on the facts, not on assuming every commercial-looking job is covered or every homeowner contract has no remedies.
To have your subcontracts read for when you will be paid and where the Construction Act fills the gaps, see our Late Payment Prevention service.
Sources
- Housing Grants, Construction and Regeneration Act 1996, Part II (Construction contracts), as amended by the Local Democracy, Economic Development and Construction Act 2009, Part 8. legislation.gov.uk.
- Housing Grants, Construction and Regeneration Act 1996, s 106 (Provisions not applicable to contract with residential occupier). legislation.gov.uk.