Local Democracy, Economic Development and Construction Bill [HL]—
Amendments to be debated in the House of Lordscontinued

House of Lords

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Clause 133

 

LORD O'NEILL OF CLACKMANNAN

203Page 75, line 21, leave out subsection (2)
 

Clause 134

 

LORD O'NEILL OF CLACKMANNAN

204Leave out Clause 134 and insert the following new Clause—
  "Right to refer disputes to adjudication and conduct of the adjudication
  In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), for section 108 (right to refer disputes to adjudication) substitute—
"108Right to refer disputes to adjudication and conduct of the adjudication
(1)  A party to a construction contract has the right to refer a dispute arising under the contract for adjudication.
(2)  The adjudication shall be conducted solely in accordance with the adjudication provisions of the Scheme for Construction Contracts.
(3)  Any contractual provision between the parties to a construction contract which adds to, omits, varies or excludes the provisions of the Scheme is ineffective.
 It is immaterial whether or not the contractual provision is contained in the construction contract.
(4)  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 arising under the construction contract, including any provision requiring a party to provide security for any costs incurred by the other in the adjudication, is ineffective.
 It is immaterial whether or not the contractual provision is contained in the construction contract.
(5)  The adjudicator shall be permitted to correct his decision not later than seven days after the date of the decision is communicated to the parties so as to remove a clerical or typographical error arising by accident or omission.
(6)  To the extent that the adjudicator's decision requires a party to a construction contract to pay a sum of money to the other, the decision shall be enforced as if it were a debt irrespective of any counterclaim including any right to set-off or abatement.
(7)  For England and Wales, and Scotland, the Scheme may include provision conferring powers on courts in relation to adjudication and provision relating to the enforcement of the adjudicator's decision.""
 

Clause 135

 

LORD O'NEILL OF CLACKMANNAN

 Lord O'Neill of Clackmannan gives notice of his intention to oppose the Question that Clause 135 stand part of the Bill.
 

Clause 136

 

LORD O'NEILL OF CLACKMANNAN

205Page 76, line 16, at end insert ", and
(c)  any entitlement, the issue of any certificate, notice or decision, or on the occurrence of any event under another contract"
 

After Clause 136

 

LORD O'NEILL OF CLACKMANNAN

206Insert the following new Clause—
"Conditional payment provisions: insolvency of a third party payer
  In the Housing Grants, Construction and Regeneration Act 1996 (c. 53) in section 113 (prohibition of conditional payment provisions), omit the following—
(a)  in subsection (1), "unless the third person, or any other person payment by whom is under the contract (directly or indirectly) a condition of payment by that third person, is insolvent", and
(b)  subsection (2),
(c)  subsection (3),
(d)  subsection (4), and
(e)  subsection (5)."
 

Clause 137

 

LORD O'NEILL OF CLACKMANNAN

207Page 77, leave out lines 1 to 3
208Page 77, leave out lines 7 to 17
209Page 77, line 23, leave out "(2)(a) or (b)" and insert "(2)(b)"
210Page 77, line 34, leave out from beginning to end of line 15 on page 78
 

Clause 138

 

LORD O'NEILL OF CLACKMANNAN

211Page 78, line 24, leave out from "means" to end of line 33 and insert "the amount specified in a notice complying with section 110(3) which has been given pursuant to and in accordance with a requirement of the contract"
212Page 78, line 34, at beginning insert "Not later than fourteen days after the payment due date,"
213Page 78, line 40, at end insert ", and
(c)  the precise reasons that justify the difference between the sum in the payer's notice and that in the payee's notice."
214Page 78, line 43, leave out from "(3)" to end of line 3 on page 79 and insert "must not be given before the notice referred to in subsection (2)"
215Page 79, leave out lines 6 to 9
216Page 79, leave out lines 25 to 32 and insert—
"(   )  Any contractual provision between the parties to a construction contract which seeks to exclude or oust the provisions of this section is ineffective.
(   )  It is immaterial whether or not the contractual provision is contained in the construction contract."
 

After Clause 139

 

LORD O'NEILL OF CLACKMANNAN

217Insert the following new Clause—
  "Insolvency protection
  In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), after section 113 (prohibition of conditional payment provisions) insert—
"113AInsolvency protection
(1)  A party to a construction contract may at any time request the other party to provide adequate security including bank guarantees and bonds in respect of payments of the contract price including the price of any varied or additional works.
(2)  Where a party fails to provide the adequate security as requested under subsection (1), the party making the request has the right to suspend any or all of his obligations under the construction contract with the party in default.
(3)  The right may not be exercised without first giving to the party in default at least seven days' notice of intention to suspend performance, stating that performance will be suspended unless, in the meantime, the security requested under subsection (1) is provided.
(4)  The right to suspend performance ceases when the party in the default makes available the security requested under subsection (1).
(5)  The consequences of the exercise of the right of the suspension under subsection (2) are as set out in subsections (3A) and (4) in section 112.""

 
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19 January 2009