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Scheme for Construction Contracts: definition and example

The default rules that fill the gaps where a construction contract does not meet the Construction Act.

By Jack Butler-Kettle · Updated

Guidance for England and Wales. Check the contract, amendments and facts that apply to your job.

What it means in practice

Read this alongside section 114 of the Housing Grants, Construction and Regeneration Act 1996 and Part I of the Scheme for Construction Contracts (England and Wales) Regulations 1998 and Part II of the Scheme for Construction Contracts (England and Wales) Regulations 1998.

The Scheme supplies statutory provisions where an in-scope contract does not meet the Construction Act's requirements. Payment provisions and adjudication provisions operate differently, so it is unsafe to replace every term automatically. This explanation concerns the England-and-Wales Scheme; other jurisdictions have their own arrangements.

Identify the particular non-compliant or missing provision. A post-signing contract review can help organise the payment terms for further assessment.

Worked example

The facts

A subcontract contains a payment process but leaves a required date unclear.

What happens

  1. The subcontractor checks the contract against the statutory requirements.

  2. It identifies which applicable Scheme provision supplies or replaces the defective arrangement.

What this shows

The analysis addresses the actual gap rather than assuming that the entire agreement has been replaced.

Sources

  1. Housing Grants, Construction and Regeneration Act 1996, s 114 (The Scheme for Construction Contracts). legislation.gov.uk.
  2. Scheme for Construction Contracts (England and Wales) Regulations 1998, SI 1998/649, Schedule, Part I (Adjudication). legislation.gov.uk.
  3. Scheme for Construction Contracts (England and Wales) Regulations 1998, SI 1998/649, Schedule, Part II (Payment). legislation.gov.uk.