Herbert Smith LLP, London

The key legislation that has come into force during the past year in the UK is the Local Democracy, Economic Development and Construction Act 2009. This Report focuses on this Act. It also covers various new standard form contracts which have been issued by the major publishers to reflect its requirements. We also report on other legislation which has been introduced recently, including the Bribery Act 2010 which has tougher sanctions for acts of bribery and corruption than may be encountered in other jurisdictions. The courts throughout the UK have also been active in the construction field during this period and this Report includes summaries of notable decisions.

As previously reported ([2010] 27 ICLR 254), the Local Democracy, Economic Development and Construction Act 2009 (the 2009 Act) makes important changes to the statutory payment, adjudication and suspension rules in many construction contracts, amending Part II of the Housing, Grants, Construction and Regeneration Act 1996 (the 1996 Act). Amendments to secondary legislation, including a Scheme, have now been approved. The Act and secondary legislation came into force in England on 1 October 2011. Similar, although not entirely identical, provisions were made at the same time in Wales, Scotland and Northern Ireland.

It is no longer necessary for construction contracts to be in writing in order to be covered by the provisions of the 1996 Act, as amended by the 2009 Act.