IMPROVING PAYMENT PRACTICES IN THE CONSTRUCTION INDUSTRY

On 16 January 2006 the Department of Trade and Industry issued a paper which analyses the responses to the earlier consultation on proposals to amend Part II of the Housing Grants Construction and Regeneration Act 1996 (hereafter ‘the Act’) and the Scheme for Construction Contracts (England and Wales) Regulations 1999 (hereafter ‘the Scheme’) and which outlines the government’s proposals in the light of these responses. Finally, the document announces the government’s planned next steps in terms of amendments to the Act. Perhaps rather controversially, the government intends to make these changes by way of a DTI Regulatory Reform Order. The intention is to produce a consultation paper later in the spring, which will allow for consultation over the summer in time for the 2006/7 Parliamentary session. It is obviously not possible to examine these proposals in any detail here; it will suffice to outline the essential nature of the changes which are being put forward.