Payment in construction contracts: Construction Act 1996 and as amended

Resource type: Practice note

Status: Maintained

Jurisdictions: England, Scotland, Wales

A note on the statutory payment rules under Part II of the Housing Grants, Construction and Regeneration Act 1996 (Construction Act 1996) and under that Act, as amended by Part 8 of the Local Democracy, Economic Development and Construction Act 2009 (LDEDC Act 2009). The note explains the old payment mechanism, including stage payments, the meaning of adequate payment mechanism and payment and withholding notices. It also describes the new payment mechanism, including default payment notices, pay less notices and the requirement to pay the notified sum.

PLC Construction

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Resource ID: 1-385-6400
Products: PLC UK Construction
This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.

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Topics

Adjudication: ADRAdjudication: ADR (http://uk.p02del.practicallaw.com/3-204-9135)
Building Contracts and ContractorsBuilding Contracts and Contractors (http://uk.p02del.practicallaw.com/1-381-2944)
Professional Appointments and LiabilitiesProfessional Appointments and Liabilities (http://uk.p02del.practicallaw.com/8-381-2950)

Practice note: overview

Construction Act 1996 changes toolkit Construction Act 1996 changes toolkit (http://publicsector.practicallaw.com/topic3-503-9091)

Practice notes

Amendments under the LDEDC Act 2009 to the Construction Act 1996 Amendments under the LDEDC Act 2009 to the Construction Act 1996 (http://publicsector.practicallaw.com/topic4-386-2843)
LDEDC Act 2009: adjudication LDEDC Act 2009: adjudication (http://publicsector.practicallaw.com/topic3-384-2935)
LDEDC Act 2009: FAQs on adjudication LDEDC Act 2009: FAQs on adjudication (http://publicsector.practicallaw.com/topic7-503-7900)
LDEDC Act 2009: FAQs on payment LDEDC Act 2009: FAQs on payment (http://publicsector.practicallaw.com/topic3-503-7902)
LDEDC Act 2009: payment LDEDC Act 2009: payment (http://publicsector.practicallaw.com/topic0-384-3875)
Payment in construction contracts: Scheme for Construction Contracts 1998 and as amended Payment in construction contracts: Scheme for Construction Contracts 1998 and as amended (http://publicsector.practicallaw.com/topic8-503-7909)
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Standard documents

Pay less notice for construction contract Pay less notice for construction contract (http://publicsector.practicallaw.com/topic8-510-3032)
Payment notice for construction contract (contract dated before 1 October 2011) Payment notice for construction contract (contract dated before 1 October 2011) (http://publicsector.practicallaw.com/topic9-512-7476)
Payment notice for construction contract (contract dated on or after 1 October 2011) Payment notice for construction contract (contract dated on or after 1 October 2011) (http://publicsector.practicallaw.com/topic4-510-2949)
Withholding notice for a construction contract Withholding notice for a construction contract (http://publicsector.practicallaw.com/topic0-512-0969)

Standard clause

LDEDC Act 2009: payment, suspension and adjudication clause for professional appointment LDEDC Act 2009: payment, suspension and adjudication clause for professional appointment (http://publicsector.practicallaw.com/topic8-503-7513)

Checklists

LDEDC Act 2009 and Construction Act 1996: payment mechanism compared LDEDC Act 2009 and Construction Act 1996: payment mechanism compared (http://publicsector.practicallaw.com/topic1-503-8865)
Payment mechanisms in a construction contract: flowchart Payment mechanisms in a construction contract: flowchart (http://publicsector.practicallaw.com/topic2-325-8958)
Slideshow: Construction Act 1996 as amended by the LDEDC Act 2009 Slideshow: Construction Act 1996 as amended by the LDEDC Act 2009 (http://publicsector.practicallaw.com/topic3-503-9232)

Binary content

Training presentation: Construction Act 1996 as amended by the LDEDC Act 2009 Training presentation: Construction Act 1996 as amended by the LDEDC Act 2009 (http://publicsector.practicallaw.com/topic9-503-9111)

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