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News Update

Changes to Building Contracts - 1st October 2011

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Make sure you are using the latest version of FMB contracts to comply with new law, starting from 1st October 2011.

 

The new FMB contracts (dated 1st October 2011) can be downloaded for FREE from http://www.fmb.org.uk/find-a-builder/free-contracts/

 

 

Changes to the Housing Grants Construction and Regeneration Act 1996, made by the Local Democracy Economic Development and Construction Act 2009 are due to come into force in England and Wales on 1st  October.  Default rules will be implied into construction contracts that do not make certain provisions as the Construction Act requires.   Where members have not used a contract, or have used a contract which is not compliant with the requirements of the 2009 Act, then the Scheme for Construction Contracts (SCC) contains fallback provisions that come into play.  Contracts (or parts of them) agreed verbally will be covered by the SCC, provided they are not with a residential occupier (that is not with a client who intends to occupy the premises as their main residence).  Similar legislation will come into effect in Scotland on 1st November and equivalent changes to Northern Ireland's legislation have been passed. 

 

The main changes that may affect members are changes to the rules regarding payment and suspension of work.  There are also changes to the rules regarding adjudication.  The FMB has revised its own contracts and other organisations (such as JCT) will also make changes to their contracts to comply with the Act. There was more on these changes in an article in the September 2011 issue of Master Builder.

Date 30/09/2011