Local Democracy, Economic Development and Construction Bill [HL]

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Session 2008 - 09
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Local Democracy, Economic Development and Construction Bill [HL]

Local Democracy, Economic Development and Construction Bill [HL]
Part 7 — Multi-area agreements
77

123
Preparation of draft multi-area agreement
(1)
In preparing a draft multi-area agreement in accordance with a direction under
section 122, the responsible authority must consult—
(a)
each of the other local authorities for the proposed area,
(b)
each partner authority for that area, and
5
(c)
such other persons as appear to it to be appropriate.
(2)
In preparing the draft, the responsible authority must co-operate with—
(a)
each of the other local authorities for the proposed area, and
(b)
each partner authority for that area,

in determining the improvement targets relating to that local authority or
10
partner authority that are to be specified in the draft.
(3)
In preparing the draft, the responsible authority must have regard to any
guidance issued by the Secretary of State.
(4)
In determining the improvement targets relating to it which are to be specified
in the draft, each of the other local authorities, and each partner authority, for
15
the proposed area must—
(a)
co-operate with the responsible authority, and
(b)
have regard to any guidance issued by the Secretary of State.
124
Approval of draft multi-area agreement
(1)
If a draft multi-area agreement is submitted to the Secretary of State under
20
section 122, the Secretary of State may by notice in writing to the responsible
authority—
(a)
approve the draft,
(b)
require the responsible authority to modify the draft, or
(c)
reject the draft.
25
(2)
If the Secretary of State approves a draft multi-area agreement, a multi-area
agreement in the form of the draft has effect for the period specified in it.
(3)
A requirement to modify a draft multi-area agreement operates for the
purposes of section 122 as a direction under that section to prepare and submit
a further draft of a multi-area agreement.
30
(4)
If the Secretary of State rejects a draft multi-area agreement, the Secretary of
State may not give a further direction under section 122 based on the same
request under section 121.
125
Submission of existing multi-area agreement
(1)
This section applies to a multi-area agreement prepared otherwise than in
35
accordance with a direction under section 122.
(2)
The local authorities for the area covered by the agreement may—
(a)
submit the agreement to the Secretary of State, and
(b)
request the Secretary of State to approve the agreement under section
126.
40
(3)
The local authorities making the request—

Local Democracy, Economic Development and Construction Bill [HL]
Part 7 — Multi-area agreements
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(a)
must include all of the local authorities for the area covered by the
agreement, other than any non-unitary district council for that area;
(b)
may include any non-unitary district council for that area.
(4)
Before making the request, the local authorities must consult—
(a)
any other local authority for the area covered by the agreement, and
5
(b)
each partner authority for that area.
(5)
The agreement must specify, in relation to each improvement target—
(a)
the persons or persons to whom the target relates, and
(b)
where the target does not relate to the whole of the proposed area, the
part or parts of the area to which it relates.
10
(6)
The agreement must specify the period for which it has effect.
(7)
The request must be made in writing and must—
(a)
identify the local authorities making the request,
(b)
nominate one of them as the responsible authority in relation to the
agreement,
15
(c)
identify the area covered by the agreement, and
(d)
provide information about the outcome of the consultation under
subsection (4).
(8)
The local authorities making the request must have regard to any guidance
issued by the Secretary of State about such requests.
20
126
Approval of existing multi-area agreement
(1)
If a multi-area agreement is submitted to the Secretary of State in accordance
with section 125, the Secretary of State may approve the agreement by notice
in writing to the responsible authority.
(2)
An agreement approved under this section has effect for the purposes of this
25
Part for the period specified in it.
Effect of multi-area agreements
127
Duty to have regard to improvement targets
Where a multi-area agreement has effect by virtue of section 124 or 126—
(a)
each local authority for the area covered by the agreement, and
30
(b)
each partner authority for that area,
must, in exercising its functions, have regard to every improvement target
specified in the agreement that relates to it.
Revision of multi-area agreements
128
Responsible authorities
35
(1)
Subject as follows, in this Part “the responsible authority”, in relation to a
multi-area agreement, means—
(a)
the authority that prepared the draft of the agreement, or

Local Democracy, Economic Development and Construction Bill [HL]
Part 7 — Multi-area agreements
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(b)
in the case of an agreement approved under section 126, the authority
nominated under section 125 in relation to the agreement.
(2)
The local authorities to which the targets specified in a multi-area agreement
relate may request the Secretary of State to agree to another one of those
authorities becoming the responsible authority in relation to the agreement.
5
(3)
A request under subsection (2) must be made in writing.
129
Revision proposals
(1)
At any time while a multi-area agreement has effect by virtue of section 124 or
126, the responsible authority—
(a)
may prepare and submit to the Secretary of State a revision proposal,
10
and
(b)
must do so if the Secretary of State so directs.
(2)
In this Part “revision proposal”, in relation to a multi-area agreement, means a
document proposing any or all of the following—
(a)
the enlargement of the area covered by the agreement;
15
(b)
changes to improvement targets specified in the agreement;
(c)
the removal of improvement targets from the agreement;
(d)
the addition of improvement targets to the agreement;
(e)
the extension of the period specified in the agreement for which the
agreement has effect.
20
(3)
A revision proposal that proposes changes to an improvement target must
specify—
(a)
each person to whom the target relates, and
(b)
where it does not relate to the whole of the area covered by the
agreement, the part or parts of the area to which it relates.
25
(4)
A revision proposal that proposes the addition of an improvement target must
specify—
(a)
each person to whom the target would relate, and
(b)
where the target would not relate to the whole of the area covered by
the agreement, the part or parts of the area to which it would relate.
30
(5)
A direction under this section—
(a)
may specify the date by which a revision proposal must be submitted
to the Secretary of State;
(b)
may be varied or revoked.
130
Preparation of revision proposal
35
(1)
In preparing a revision proposal, the responsible authority must consult—
(a)
each of the other local authorities for the area that would be covered by
the multi-area agreement if the revision proposal were approved (“the
agreement area”),
(b)
each partner authority for that area, and
40
(c)
such other persons as appear to it to be appropriate.
(2)
In preparing a revision proposal, the responsible authority must co-operate
with—

Local Democracy, Economic Development and Construction Bill [HL]
Part 7 — Multi-area agreements
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(a)
each of the other local authorities for the agreement area, and
(b)
each partner authority for that area,

in determining a change affecting that local authority or partner authority that
is to be proposed by the revision proposal.
(3)
In preparing a revision proposal, the responsible authority must have regard
5
to any guidance issued by the Secretary of State.
(4)
In determining a change affecting it that is to be proposed by the revision
proposal, each of the other local authorities, and each partner authority, for the
agreement area must—
(a)
co-operate with the responsible authority, and
10
(b)
have regard to any guidance issued by the Secretary of State.
131
Approval of revision proposal
(1)
If a revision proposal relating to a multi-area agreement is submitted to the
Secretary of State under section 129, the Secretary of State may by notice in
writing to the responsible authority—
15
(a)
approve the revision proposal,
(b)
if the revision proposal was submitted to the Secretary of State
pursuant to a direction under section 129(1)(b), require the responsible
authority to modify the revision proposal, or
(c)
reject the revision proposal.
20
(2)
If the Secretary of State approves the revision proposal, the multi-area
agreement has effect subject to the changes set out in the revision proposal.
(3)
A requirement to modify a revision proposal operates for the purposes of
section 129 as a direction under subsection (1)(b) of that section to prepare and
submit a further revision proposal.
25
Information about multi-area agreements
132
Duty to publish information about multi-area agreement
(1)
If a multi-area agreement is approved under section 124 or 126, the responsible
authority must publish such information about the agreement as the authority
considers appropriate.
30
(2)
If a revision proposal is approved under section 131, the responsible authority
must publish such information about the revisions to the multi-area agreement
as revised by the revision proposal as the authority considers appropriate.
(3)
Information required to be published under this section may be published in
such manner as the responsible authority considers appropriate.
35
Supplementary and general
133
Consultation on guidance
(1)
Before issuing guidance under this Part, the Secretary of State must consult—
(a)
such representatives of local government, and
(b)
such other persons (if any),
40

Local Democracy, Economic Development and Construction Bill [HL]
Part 8 — Construction contracts
81


as the Secretary of State considers appropriate.
(2)
The reference in subsection (1) to representatives of local government includes
representatives of any persons who are, or are capable of being, partner
authorities for the area covered by a multi-area agreement.
134
Interpretation
5
In this Part—
“the agreement area” has the meaning given by section 130(1);
“improvement target” has the meaning given by section 118(4);
“local authority” has the meaning given by section 119;
“multi-area agreement” has the meaning given by section 118(2);
10
“non-unitary district council” has the meaning given by section 121(3);
“partner authority” has the meaning given by section 120;
“the proposed area” has the meaning given by section 121(1);
“the responsible authority”, in relation to a draft multi-area agreement,
means the local authority nominated under section 121(4) to be
15
responsible for preparing and submitting the draft;
“the responsible authority”, in relation to a multi-area agreement, has the
meaning given by section 128;
“revision proposal” has the meaning given by section 129(2).
Part 8
20
Construction contracts
135
Requirement for construction contracts to be in writing
(1)
In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), section
107 (provisions applicable only to contracts in writing) is repealed.
(2)
In section 108 of that Act (right to refer disputes to adjudication)—
25
(a)
in subsection (2), after “The contract shall” insert “include provision in
writing so as to”;
(b)
in subsections (3) and (4), after “provide” insert “in writing”.
136
Adjudicator’s power to make corrections
In the Housing Grants, Construction and Regeneration Act 1996, in section 108
30
(right to refer disputes to adjudication), after subsection (3) insert—
“(3A)
The contract shall include provision in writing permitting the
adjudicator to correct his decision so as to remove a clerical or
typographical error arising by accident or omission.”
137
Adjudication costs
35
In the Housing Grants, Construction and Regeneration Act 1996, after section

Local Democracy, Economic Development and Construction Bill [HL]
Part 8 — Construction contracts
82

108 insert—
“108A
Adjudication costs: effectiveness of provision
(1)
This section applies to any contractual provision made between the
parties to a construction contract which concerns the allocation as
between those parties of costs relating to the adjudication of a dispute
5
arising under the construction contract.

It is immaterial whether or not the contractual provision is contained in
the construction contract.
(2)
Any contractual provision to which this section applies is ineffective
unless it is made in writing after the giving of notice of intention to refer
10
the dispute to adjudication.
(3)
In subsection (1) the reference to costs relating to the adjudication of a
dispute includes the fees and expenses of the adjudicator.”
138
Determination of payments due
(1)
In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), section
15
110 (dates for payment) is amended as follows.
(2)
After subsection (1) insert—
“(1A)
The requirement in subsection (1)(a) to provide an adequate
mechanism for determining what payments become due under the
contract, or when, is not satisfied where a construction contract makes
20
payment conditional on—
(a)
the performance of obligations under another contract, or
(b)
a decision by any person as to whether obligations under
another contract have been performed.
(1B)
In subsection (1A)(a) and (b) the references to obligations do not
25
include obligations to make payments (but see section 113).
(1C)
Subsection (1A) does not apply where—
(a)
the construction contract is an agreement between the parties
for the carrying out of construction operations by another
person, whether under sub-contract or otherwise, and
30
(b)
the obligations referred to in that subsection are obligations on
that other person to carry out those operations.”
(3)
After subsection (1C) (as inserted by subsection (2) above) insert—
“(1D)
The requirement in subsection (1)(a) to provide an adequate
mechanism for determining when payments become due under the
35
contract is not satisfied where a construction contract provides for the
date on which a payment becomes due to be determined by reference
to the giving to the person to whom the payment is due of a notice
which relates to what payments are due under the contract.”
139
Notices relating to payment
40
(1)
In the Housing Grants, Construction and Regeneration Act 1996, in section 109
(entitlement to stage payments), in subsection (4), for “under the contract”
substitute “provided for by the contract”.

Local Democracy, Economic Development and Construction Bill [HL]
Part 8 — Construction contracts
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(2)
In section 110 of that Act (dates for payment), omit the following—
(a)
subsection (2), and
(b)
in subsection (3), “or (2)”.
(3)
After section 110 of that Act insert—
“110A
Payment notices: contractual requirements
5
(1)
A construction contract shall, in relation to every payment provided for
by the contract—
(a)
require the payer or a specified person to give a notice
complying with subsection (2) to the payee not later than five
days after the payment due date, or
10
(b)
require the payee to give a notice complying with subsection (3)
to the payer or a specified person not later than five days after
the payment due date.
(2)
A notice complies with this subsection if it specifies—
(a)
in a case where the notice is given by the payer—
15
(i)
the sum that the payer considers to be or to have been
due at the payment due date in respect of the payment,
and
(ii)
the basis on which that sum is calculated;
(b)
in a case where the notice is given by a specified person—
20
(i)
the sum that the payer or the specified person considers
to be or to have been due at the payment due date in
respect of the payment, and
(ii)
the basis on which that sum is calculated.
(3)
A notice complies with this subsection if it specifies—
25
(a)
the sum that the payee considers to be or to have been due at the
payment due date in respect of the payment, and
(b)
the basis on which that sum is calculated.
(4)
For the purposes of this section, it is immaterial that the sum referred
to in subsection (2)(a) or (b) or (3)(a) may be zero.
30
(5)
If or to the extent that a contract does not comply with subsection (1),
the relevant provisions of the Scheme for Construction Contracts apply.
(6)
In this and the following sections, in relation to any payment provided
for by a construction contract—
“payee” means the person to whom the payment is due;
35
“payer” means the person from whom the payment is due;
“payment due date” means the date provided for by the contract
as the date on which the payment is due;
“specified person” means a person specified in or determined in
accordance with the provisions of the contract.
40
110B
Payment notices: payee’s notice in default of payer’s notice
(1)
This section applies in a case where, in relation to any payment
provided for by a construction contract—
(a)
the contract requires the payer or a specified person to give the
payee a notice complying with section 110A(2) not later than
45
five days after the payment due date, but