|
| |
|
(b) | notice is not given as so required. |
| |
(2) | Subject to subsection (4), the payee may give to the payer a notice |
| |
complying with section 110A(3) at any time after the date on which the |
| |
notice referred to in subsection (1)(a) was required by the contract to be |
| |
| 5 |
(3) | Where pursuant to subsection (2) the payee gives a notice complying |
| |
with section 110A(3), the final date for payment of the sum specified in |
| |
the notice shall for all purposes be regarded as postponed by the same |
| |
number of days as the number of days after the date referred to in |
| |
subsection (2) that the notice was given. |
| 10 |
| |
(a) | the contract permits or requires the payee, before the date on |
| |
which the notice referred to in subsection (1)(a) is required by |
| |
the contract to be given, to notify the payer or a specified person |
| |
| 15 |
(i) | the sum that the payee considers will become due on the |
| |
payment due date in respect of the payment, and |
| |
(ii) | the basis on which that sum is calculated, and |
| |
(b) | the payee gives such notification in accordance with the |
| |
| 20 |
| that notification is to be regarded as a notice complying with section |
| |
110A(3) given pursuant to subsection (2) (and the payee may not give |
| |
another such notice pursuant to that subsection).” |
| |
140 | Requirement to pay notified sum |
| |
(1) | In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), for |
| 25 |
section 111 (notice of intention to withhold payment) substitute— |
| |
“111 | Requirement to pay notified sum |
| |
(1) | Subject as follows, where a payment is provided for by a construction |
| |
contract, the payer must pay the notified sum (to the extent not already |
| |
paid) on or before the final date for payment. |
| 30 |
(2) | For the purposes of this section, the “notified sum” in relation to any |
| |
payment provided for by a construction contract means— |
| |
(a) | in a case where a notice complying with section 110A(2) has |
| |
been given pursuant to and in accordance with a requirement of |
| |
the contract, the amount specified in that notice; |
| 35 |
(b) | in a case where a notice complying with section 110A(3) has |
| |
been given pursuant to and in accordance with a requirement of |
| |
the contract, the amount specified in that notice; |
| |
(c) | in a case where a notice complying with section 110A(3) has |
| |
been given pursuant to and in accordance with section 110B(2), |
| 40 |
the amount specified in that notice. |
| |
(3) | The payer or a specified person may in accordance with this section |
| |
give to the payee a notice of the payer’s intention to pay less than the |
| |
| |
(4) | A notice under subsection (3) must specify— |
| 45 |
|
| |
|
| |
|
(a) | the sum that the payer considers to be due on the date the notice |
| |
| |
(b) | the basis on which that sum is calculated. |
| |
| It is immaterial for the purposes of this subsection that the sum referred |
| |
to in paragraph (a) or (b) may be zero. |
| 5 |
(5) | A notice under subsection (3)— |
| |
(a) | must be given not later than the prescribed period before the |
| |
final date for payment, and |
| |
(b) | in a case referred to in subsection (2)(b) or (c), may not be given |
| |
before the notice by reference to which the notified sum is |
| 10 |
| |
(6) | Where a notice is given under subsection (3), subsection (1) applies only |
| |
in respect of the sum specified pursuant to subsection (4)(a). |
| |
(7) | In subsection (5), “prescribed period” means— |
| |
(a) | such period as the parties may agree, or |
| 15 |
(b) | in the absence of such agreement, the period provided by the |
| |
Scheme for Construction Contracts. |
| |
(8) | Subsection (9) applies where in respect of a payment— |
| |
(a) | a notice complying with section 110A(2) has been given |
| |
pursuant to and in accordance with a requirement of the |
| 20 |
contract (and no notice under subsection (3) is given), or |
| |
(b) | a notice under subsection (3) is given in accordance with this |
| |
| |
| but on the matter being referred to adjudication the adjudicator decides |
| |
that more than the sum specified in the notice should be paid. |
| 25 |
(9) | In a case where this subsection applies, the decision of the adjudicator |
| |
referred to in subsection (8) shall be construed as requiring payment of |
| |
the additional amount not later than— |
| |
(a) | seven days from the date of the decision, or |
| |
(b) | the date which apart from the notice would have been the final |
| 30 |
| |
| |
(10) | Subsection (1) does not apply in relation to a payment provided for by |
| |
a construction contract where— |
| |
(a) | the contract provides that, if the payee becomes insolvent the |
| 35 |
payer need not pay any sum due in respect of the payment, and |
| |
(b) | the payee has become insolvent after the prescribed period |
| |
referred to in subsection (5)(a). |
| |
(11) | Subsections (2) to (5) of section 113 apply for the purposes of subsection |
| |
(10) of this section as they apply for the purposes of that section.” |
| 40 |
(2) | In section 112 of that Act (right to suspend performance for non-payment)— |
| |
(a) | in subsection (1), for the words from “Where” to “given” substitute |
| |
“Where the requirement in section 111(1) applies in relation to any sum |
| |
but is not complied with,”; |
| |
(b) | in subsection (3), for “the amount due” substitute “the sum referred to |
| 45 |
| |
|
| |
|
| |
|
141 | Suspension of performance for non-payment |
| |
(1) | In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), section |
| |
112 (right to suspend performance for non-payment) is amended as follows. |
| |
(2) | In subsection (1), after “performance of” insert “any or all of”. |
| |
(3) | After subsection (3) insert— |
| 5 |
“(3A) | Where the right conferred by this section is exercised, the party in |
| |
default shall be liable to pay to the party exercising the right a |
| |
reasonable amount in respect of costs and expenses reasonably |
| |
incurred by that party as a result of the exercise of the right.” |
| |
(4) | In subsection (4), after “pursuance of” insert “, or in consequence of the exercise |
| 10 |
| |
| |
| |
| |
(1) | Schedule 7 contains repeals. |
| 15 |
(2) | The repeal by this Act of sections 17, 19 and 26 of the Local Government Act |
| |
1992 (c. 19) does not affect the continuing effect of orders and regulations made |
| |
| |
(3) | For the purposes of this Act— |
| |
(a) | the repeals in Part 1 of Schedule 7 are part of Chapter 6 of Part 1 |
| 20 |
(membership of local authorities); |
| |
(b) | the repeal in Part 2 of Schedule 7 is part of Chapter 2 of Part 2 (audit of |
| |
entities connected with local authorities); |
| |
(c) | the repeals in Part 3 of Schedule 7 are part of Part 3 (local government |
| |
boundary and electoral change); |
| 25 |
(d) | the repeals in Part 4 of Schedule 7 are part of Part 5 (regional strategy); |
| |
(e) | the repeals in Part 5 of Schedule 7 are part of Part 8 (construction |
| |
| |
| |
(1) | Parts 1 to 7 extend to England and Wales only, except that— |
| 30 |
(a) | an amendment or repeal effected by any of those Parts has the same |
| |
extent as the provision amended or repealed, and |
| |
(b) | sections 64(2) to (6), 82(2) to (6), 111, 113 and 114 (powers to make |
| |
consequential provision etc) extend also to Scotland and Northern |
| |
| 35 |
Paragraph (a) does not apply to Chapter 6 of Part 1 (which accordingly extends |
| |
to England and Wales only). |
| |
(2) | Part 8 extends to England and Wales and Scotland. |
| |
(3) | This Part extends to England and Wales, Scotland and Northern Ireland. |
| |
|
| |
|
| |
|
144 | Commencement: general |
| |
(1) | In Part 1 (democracy and involvement)— |
| |
(a) | Chapters 1 and 2 come into force— |
| |
(i) | in relation to England, on a day appointed by the Secretary of |
| |
| 5 |
(ii) | in relation to Wales, on a day appointed by the Welsh Ministers; |
| |
(b) | Chapter 3 comes into force on a day appointed by the Secretary of State; |
| |
(c) | Chapter 4 comes into force on the day on which this Act is passed; |
| |
(d) | Chapters 5 and 6 come into force at the end of the period of two months |
| |
beginning with the day on which this Act is passed. |
| 10 |
(2) | In Part 2 (local authorities: governance and audit)— |
| |
| |
(i) | section 30 comes into force on a day appointed by the Secretary |
| |
| |
(ii) | sections 31 and 32 come into force at the end of the period of two |
| 15 |
months beginning with the day on which this Act is passed; |
| |
(b) | Chapter 2 comes into force— |
| |
(i) | in relation to England, on a day appointed by the Secretary of |
| |
| |
(ii) | in relation to Wales, on a day appointed by the Welsh Ministers. |
| 20 |
(3) | In Part 3 (local government boundary and electoral change)— |
| |
(a) | sections 59, 61 and 65 and Schedule 3 come into force on the day on |
| |
which this Act is passed; |
| |
(b) | the remaining provisions come into force on a day appointed by the |
| |
| 25 |
(4) | Part 4 (local authority economic assessment) comes into force on a day |
| |
appointed by the Secretary of State. |
| |
(5) | Part 5 (regional strategy) comes into force on a day appointed by the Secretary |
| |
| |
(6) | Part 6 (economic prosperity boards and combined authorities) comes into force |
| 30 |
on a day appointed by the Secretary of State. |
| |
(7) | Part 7 (multi-area agreements) comes into force at the end of the period of two |
| |
months beginning with the day on which this Act is passed. |
| |
(8) | Part 8 (construction contracts) comes into force as specified in section 145. |
| |
(9) | This Part comes into force on the day on which this Act is passed. |
| 35 |
(10) | Any power to appoint a day under this section— |
| |
(a) | includes power to appoint different days for different purposes; |
| |
(b) | includes power to make transitional provision or savings; |
| |
(c) | is to be exercised by order made by statutory instrument. |
| |
145 | Commencement: construction contracts |
| 40 |
(1) | Part 8 comes into force, so far as extending to England and Wales— |
| |
|
| |
|
| |
|
(a) | on a day appointed by the Welsh Ministers, in relation to construction |
| |
contracts which relate to the carrying out of construction operations in |
| |
| |
(b) | on a day appointed by the Secretary of State, in relation to other |
| |
| 5 |
(2) | Part 8 comes into force, so far as extending to Scotland, on a day appointed by |
| |
| |
(3) | The amendments made by Part 8, so far as extending to England and Wales, do |
| |
| |
(a) | in relation to construction contracts which relate to the carrying out of |
| 10 |
construction operations in Wales and are entered into before the day |
| |
appointed under subsection (1)(a), or |
| |
(b) | in relation to other construction contracts which are entered into before |
| |
the day appointed under subsection (1)(b). |
| |
(4) | The amendments made by Part 8, so far as extending to Scotland, do not apply |
| 15 |
in relation to construction contracts which are entered into before the day |
| |
appointed under subsection (2). |
| |
(5) | In this section “construction contracts” and “construction operations” have the |
| |
same meanings as in Part 2 of the Housing Grants, Construction and |
| |
Regeneration Act 1996 (c. 53). |
| 20 |
(6) | Any power to appoint a day under this section— |
| |
(a) | includes power to appoint different days for different purposes; |
| |
(b) | includes power to make transitional provision or savings; |
| |
(c) | is to be exercised by order made by statutory instrument. |
| |
| 25 |
(1) | This Act may be cited as the Local Democracy, Economic Development and |
| |
| |
(2) | Nothing in this Act shall impose any charge on the people or on public |
| |
funds, or vary the amount or incidence of or otherwise alter any such charge |
| |
in any manner, or affect the assessment, levying, administration or |
| 30 |
application of any money raised by any such charge. |
| |
|
| |
|