Construction Industry Consultations

On 24 October the Department for Business, Energy and Industrial Strategy (BEIS) launched 2 consultations on payment practices in the construction industry.

The first to support a non-statutory Post Implementation Review of the 2011 Changes to Part 2 of the Housing Grants, Construction and Regeneration Act 1996 (the “Construction Act”). It will gather evidence on the effectiveness of the 2011 changes, the framework of rules created by the amended Act, the affordability of these changes for business, and the relevance and misuse of adjudication.

The second, on the practice of cash retention under construction contracts is part of a review which is being published alongside independent research carried out by Pye Tait Consulting. The research draws a number of conclusions and also identifies areas for further investigation, which the consultation will seek to gather evidence on.

The consultations run in parallel, closing on the 19 January 2018. Both consultations and supporting documentation will be used to assess the extent of the issues; and whether and what further intervention is needed.

Participation in both consultations is encouraged, as a greater number of responses will create a far stronger evidence base.

For more information, including how to respond, please follow the links below:

2011 changes to part 2 of the housing grants construction and regeneration act 1996

Retention payments in the construction industry

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