Housing Grants, Construction and Regeneration Act 1996 (c. 53)

(The document as of February, 2008)

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(a) to a construction contract with a residential occupier (see below), or

(b) to any other description of construction contract excluded from the operation of this Part by order of the Secretary of State.

(2) A construction contract with a residential occupier means a construction contract which principally relates to operations on a dwelling which one of the parties to the contract occupies, or intends to occupy, as his residence.

In this subsection "dwelling" means a dwelling-house or a flat; and for this purpose--

"dwelling-house" does not include a building containing a flat; and
"flat" means separate and self-contained premises constructed or adapted for use for residential purposes and forming part of a building from some other part of which the premises are divided horizontally.

(3) The Secretary of State may by order amend subsection (2).

(4) No order under this section shall be made unless a draft of it has been laid before and approved by a resolution of each House of Parliament.

107 Provisions applicable only to agreements in writing

(1) The provisions of this Part apply only where the construction contract is in writing, and any other agreement between the parties as to any matter is effective for the purposes of this Part only if in writing.

The expressions"agreement", "agree" and "agreed" shall be construed accordingly.

(2) There is an agreement in writing--

(a) if the agreement is made in writing (whether or not it is signed by the parties),

(b) if the agreement is made by exchange of communications in writing, or

(3) Where parties agree otherwise than in writing by reference to terms which are in writing, they make an agreement in writing.

(4) An agreement is evidenced in writing if an agreement made otherwise than in writing is recorded by one of the parties, or by a third party, with the authority of the parties to the agreement.

(5) An exchange of written submissions in adjudication proceedings, or in arbitral or legal proceedings in which the existence of an agreement otherwise than in writing is alleged by one party against another party and not denied by the other party in his response constitutes as between those parties an agreement in writing to the effect alleged.

(6) References in this Part to anything being written or in writing include its being recorded by any means.

Adjudication

108 Right to refer disputes to adjudication

(1) A party to a construction contract has the right to refer a dispute arising under the contract for adjudication under a procedure complying with this section.

For this purpose "dispute" includes any difference.

(2) The contract shall--

(a) enable a party to give notice at any time of his intention to refer a dispute to adjudication;

(b) provide a timetable with the object of securing the appointment of the adjudicator and referral of the dispute to him within 7 days of such notice;

(c) require the adjudicator to reach a decision within 28 days of referral or such longer period as is agreed by the parties after the dispute has been referred;

(d) allow the adjudicator to extend the period of 28 days by up to 14 days, with the consent of the party by whom the dispute was referred;

(e) impose a duty on the adjudicator to act impartially; and

(f) enable the adjudicator to take the initiative in ascertaining the facts and the law.

(3) The contract shall provide that the decision of the adjudicator is binding until the dispute is finally determined by legal proceedings, by arbitration (if the contract provides for arbitration or the parties otherwise agree to arbitration) or by agreement.

The parties may agree to accept the decision of the adjudicator as finally determining the dispute.

(4) The contract shall also provide that the adjudicator is not liable for anything done or omitted in the discharge or purported discharge of his functions as adjudicator unless the act or omission is in bad faith, and that any employee or agent of the adjudicator is similarly protected from liability.

(5) If the contract does not comply with the requirements of subsections (1) to (4), the adjudication provisions of the Scheme for Construction Contracts apply.

(6) For England and Wales, the Scheme may apply the provisions of the [1996 c. 23.] Arbitration Act 1996 with such adaptations and modifications as appear to the Minister making the scheme to be appropriate.

For 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.

Payment

109 Entitlement to stage payments

(1) A party to a construction contract is entitled to payment by instalments, stage payments or other periodic payments for any work under the contract unless--

(a) it is specified in the contract that the duration of the work is to be less than 45 days, or

(b) it is agreed between the parties that the duration of the work is estimated to be less than 45 days.

(2) The parties are free to agree the amounts of the payments and the intervals at which, or circumstances in which, they become due.

(3) In the absence of such agreement, the relevant provisions of the Scheme for Construction Contracts apply.

(4) References in the following sections to a payment under the contract include a payment by virtue of this section.

110 Dates for payment

(1) Every construction contract shall--

(a) provide an adequate mechanism for determining what payments become due under the contract, and when, and

(b) provide for a final date for payment in relation to any sum which becomes due.

The parties are free to agree how long the period is to be between the date on which a sum becomes due and the final date for payment.

(2) Every construction contract shall provide for the giving of notice by a party not later than five days after the date on which a payment becomes due from him under the contract, or would have become due if--

(a) the other party had carried out his obligations under the contract, and

(b) no set-off or abatement was permitted by reference to any sum claimed to be due under one or more other contracts,

specifying the amount (if any) of the payment made or proposed to be made, and the basis on which that amount was calculated.

(3) If or to the extent that a contract does not contain such provision as is mentioned in subsection (1) or (2), the relevant provisions of the Scheme for Construction Contracts apply.

111 Notice of intention to withhold payment

(1) A party to a construction contract may not withhold payment after the final date for payment of a sum due under the contract unless he has given an effective notice of intention to withhold payment.

The notice mentioned in section 110(2) may suffice as a notice of intention to withhold payment if it complies with the requirements of this section.

(2) To be effective such a notice must specify--

(a) the amount proposed to be withheld and the ground for withholding payment, or

(b) if there is more than one ground, each ground and the amount attributable to it,

and must be given not later than the prescribed period before the final date for payment.

(3) The parties are free to agree what that prescribed period is to be.

In the absence of such agreement, the period shall be that provided by the Scheme for Construction Contracts.

(4) Where an effective notice of intention to withhold payment is given, but on the matter being referred to adjudication it is decided that the whole or part of the amount should be paid, the decision shall be construed as requiring payment 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 date for payment,

whichever is the later.

112 Right to suspend performance for non-payment

(1) Where a sum due under a construction contract is not paid in full by the final date for payment and no effective notice to withhold payment has been given, the person to whom the sum is due has the right (without prejudice to any other right or remedy) to suspend performance of his obligations under the contract to the party by whom payment ought to have been made ("the party in default").

(2) 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 the ground or grounds on which it is intended to suspend performance.

(3) The right to suspend performance ceases when the party in default makes payment in full of the amount due.

(4) Any period during which performance is suspended in pursuance of the right conferred by this section shall be disregarded in computing for the purposes of any contractual time limit the time taken, by the party exercising the right or by a third party, to complete any work directly or indirectly affected by the exercise of the right.

Where the contractual time limit is set by reference to a date rather than a period, the date shall be adjusted accordingly.

113 Prohibition of conditional payment provisions

(1) A provision making payment under a construction contract conditional on the payer receiving payment from a third person is ineffective, unless that 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.

(2) For the purposes of this section a company becomes insolvent--

(a) on the making of an administration order against it under Part II of the [1986 c. 45.] Insolvency Act 1986,

(b) on the appointment of an administrative receiver or a receiver or manager of its property under Chapter I of Part III of that Act, or the appointment of a receiver under Chapter II of that Part,

(c) on the passing of a resolution for voluntary winding-up without a declaration of solvency under section 89 of that Act, or

(d) on the making of a winding-up order under Part IV or V of that Act.

(3) For the purposes of this section a partnership becomes insolvent--

(a) on the making of a winding-up order against it under any provision of the Insolvency Act 1986 as applied by an order under section 420 of that Act, or

(b) when sequestration is awarded on the estate of the partnership under section 12 of the [1985 c. 66.] Bankruptcy (Scotland) Act 1985 or the partnership grants a trust deed for its creditors.

(4) For the purposes of this section an individual becomes insolvent--

(a) on the making of a bankruptcy order against him under Part IX of the [1986 c. 45.] Insolvency Act 1986, or

(b) on the sequestration of his estate under the Bankruptcy (Scotland) Act 1985 or when he grants a trust deed for his creditors.

(5) A company, partnership or individual shall also be treated as insolvent on the occurrence of any event corresponding to those specified in subsection (2), (3) or (4) under the law of Northern Ireland or of a country outside the United Kingdom.

(6) Where a provision is rendered ineffective by subsection (1), the parties are free to agree other terms for payment.

In the absence of such agreement, the relevant provisions of the Scheme for Construction Contracts apply.

Supplementary provisions

114 The Scheme for Construction Contracts

(1) The Minister shall by regulations make a scheme ("the Scheme for Construction Contracts") containing provision about the matters referred to in the preceding provisions of this Part.

(2) Before making any regulations under this section the Minister shall consult such persons as he thinks fit.

(3) In this section "the Minister" means--

(a) for England and Wales, the Secretary of State, and

(b) for Scotland, the Lord Advocate.

(4) Where any provisions of the Scheme for Construction Contracts apply by virtue of this Part in default of contractual provision agreed by the parties, they have effect as implied terms of the contract concerned.

(5) Regulations under this section shall not be made unless a draft of them has been approved by resolution of each House of Parliament.

115 Service of notices, &c

(1) The parties are free to agree on the manner of service of any notice or other document required or authorised to be served in pursuance of the construction contract or for any of the purposes of this Part.

(2) If or to the extent that there is no such agreement the following provisions apply.

(3) A notice or other document may be served on a person by any effective means.

(4) If a notice or other document is addressed, pre-paid and delivered by post--

(a) to the addressee's last known principal residence or, if he is or has been carrying on a trade, profession or business, his last known principal business address, or

(b) where the addressee is a body corporate, to the body's registered or principal office,

it shall be treated as effectively served.

(5) This section does not apply to the service of documents for the purposes of legal proceedings, for which provision is made by rules of court.

(6) References in this Part to a notice or other document include any form of communication in writing and references to service shall be construed accordingly.

116 Reckoning periods of time

(1) For the purposes of this Part periods of time shall be reckoned as follows.

(2) Where an act is required to be done within a specified period after or from a specified date, the period begins immediately after that date.

(3) Where the period would include Christmas Day, Good Friday or a day which under the [1971 c. 80.] Banking and Financial Dealings Act 1971 is a bank holiday in England and Wales or, as the case may be, in Scotland, that day shall be excluded.

117 Crown application

(1) This Part applies to a construction contract entered into by or on behalf of the Crown otherwise than by or on behalf of Her Majesty in her private capacity.

(2) This Part applies to a construction contract entered into on behalf of the Duchy of Cornwall notwithstanding any Crown interest.

(3) Where a construction contract is entered into by or on behalf of Her Majesty in right of the Duchy of Lancaster, Her Majesty shall be represented, for the purposes of any adjudication or other proceedings arising out of the contract by virtue of this Part, by the Chancellor of the Duchy or such person as he may appoint.

(4) Where a construction contract is entered into on behalf of the Duchy of Cornwall, the Duke of Cornwall or the possessor for the time being of the Duchy shall be represented, for the purposes of any adjudication or other proceedings arising out of the contract by virtue of this Part, by such person as he may appoint.

Part III Architects

The Architects Registration Board

118 The Board and its committees

(1) The Architects' Registration Council of the United Kingdom established under the [1931 c. 33.] Architects (Registration) Act 1931 ("the 1931 Act") shall be known as the Architects Registration Board.

(2) The Board of Architectural Education, the Admission Committee and the Discipline Committee constituted under the 1931 Act are abolished.

(3) In section 3 of the 1931 Act (constitution and functions of Architects' Registration Council), after subsection (2) insert--

" (2A) Part I of the First Schedule to this Act makes provision about the constitution and proceedings of the Board.

(2B) There shall be a Professional Conduct Committee of the Board and Part II of that Schedule makes provision about its constitution and proceedings.

(2C) Part III of that Schedule gives to the Board power to establish other committees and makes provision about their constitution and proceedings.

(2D) Part IV of that Schedule makes general provision about the Board and its committees. " .

(4) For the First Schedule to the 1931 Act (constitution of Council) substitute the Schedule set out in Part I of Schedule 2.

119 Registrar and staff

For section 4 of the 1931 Act substitute--

" 4 The Registrar

(1) The Board shall appoint a person to be known as the Registrar of Architects.

(2) The Board shall determine the period for which, and the terms on which, the Registrar is appointed.

(3) The Registrar shall have the functions provided by or by virtue of this Act and any other functions which the Board directs.

(4) The Board may, in addition to paying to the Registrar a salary or fees--

(a) pay pensions to or in respect of him or make contributions to the payment of such pensions; and

(b) pay him allowances, expenses and gratuities.

4A Staff

(1) The Board may appoint staff.

(2) The Board shall determine the period for which, and the terms on which, its staff are appointed.

(3) Staff appointed by the Board shall have the duties which the Board directs.

(4) The Board may, in addition to paying salaries to its staff--

(a) pay pensions to or in respect of them or make contributions to the payment of such pensions; and

(b) pay them allowances, expenses and gratuities. " .

Registration and discipline

120 Registration

(1) Before section 6 of the 1931 Act insert--

" 5A The Register

(1) The Registrar shall maintain the Register of Architects in which there shall be entered the name of every person entitled to be registered under this Act.

(2) The Register shall show the regular business address of each registered person.

(3) The Registrar shall make any necessary alterations to the Register and, in particular, shall remove from the Register the name of any registered person who has died or has applied in the prescribed manner requesting the removal of his name.

(4) The Board shall publish annually the current version of the Register and a copy of the most recently published version of the Register shall be provided to any person who requests one on payment of a reasonable charge determined by the Board.

(5) A copy of the Register purporting to be published by the Board shall be evidence (and, in Scotland, sufficient evidence) of any matter mentioned in it.

(6) A certificate purporting to be signed by the Registrar which states that a person--

(a) is registered;

(b) is not registered;

(d) was not registered on a specified date or during a specified period; or

(e) has never been registered,

shall be evidence (and, in Scotland, sufficient evidence) of any matter stated. " .

(2) For section 6 of the 1931 Act substitute--

" 6 Entitlement to registration

(1) A person who has applied to the Registrar in the prescribed manner for registration in pursuance of this section is entitled to be registered if--

(a) he holds such qualifications and has gained such practical experience as may be prescribed; or

(b) he has a standard of competence which, in the opinion of the Board, is equivalent to that demonstrated by satisfying paragraph (a).

(2) The Board may require a person who applies for registration on the ground that he satisfies subsection (1)(b) to pass a prescribed examination in architecture.

(3) Before prescribing--

(a) qualifications or practical experience for the purposes of subsection (1)(a); or

(b) any examination for the purposes of subsection (2),

the Board shall consult the bodies representative of architects which are incorporated by royal charter and such other professional and educational bodies as it thinks appropriate.

(4) The Board may require--

(a) an applicant for registration in pursuance of this section; and

(b) a candidate for any examination under subsection (2),

to pay a fee of a prescribed amount.

(5) The Board may by rules prescribe the information and evidence to be furnished to the Registrar in connection with an application for registration in pursuance of this section.

(6) Where a person has duly applied for registration in pursuance of this section--

(a) if the Registrar is satisfied that the person is entitled to be registered, he shall enter his name in the Register; but

(b) if the Registrar is not so satisfied, he shall refer the application to the Board.

(7) The Registrar shall not consider an application for registration in pursuance of this section in any case in which it is inappropriate for him to do so (for instance because he is in any way connected with the applicant) but in such a case he shall refer the application to the Board.

(8) Where a person's application is referred to the Board under subsection (6) or (7), the Board shall direct the Registrar to enter the person's name in the Register if the Board is satisfied that the person is entitled to be registered.

(9) The Registrar shall serve on an applicant for registration in pursuance of this section written notice of the decision on his application--

(a) where the application is made on the ground that he satisfies subsection (1)(a), within three months of his application being duly made; and

(b) where the application is made on the ground that he satisfies subsection (1)(b), within six months of his application being duly made. " .

(3) After section 6A of the 1931 Act insert--

" 6B Retention of name in Register

(1) The Board may require a registered person to pay a fee (in this section referred to as a "retention fee") of a prescribed amount if he wishes his name to be retained in the Register in any calendar year after that in which it was entered.

(2) Where, after the Registrar has sent a registered person who is liable to pay a retention fee a written demand for the payment of the fee, the person fails to pay the fee within the prescribed period, the Registrar may remove the person's name from the Register.

(3) Where a person whose name has been removed from the Register under subsection (2) pays the retention fee, together with any further prescribed fee, before the end of the calendar year for which the retention fee is payable or such longer period as the Board may allow--

(a) his name shall be re-entered in the Register (without his having to make an application under section 6 or 6A); and

(b) if the Board so directs, it shall be treated as having been re-entered on the date on which it was removed.

6C Registration: additional requirements

(1) Where the Board is not satisfied that a person who--

(a) applies for registration in pursuance of section 6 or 6A;

(b) wishes his name to be retained or re-entered in the Register under section 6B; or

has gained such recent practical experience as rules made by the Board require a person to have gained before he is entitled to have his name entered, retained or re-entered in the Register, his name shall not be so entered or re-entered, or shall be removed, unless he satisfies the Board of his competence to practise.

(2) Where the Board decides that the name of a person to whom paragraph (b) of subsection (1) applies is by virtue of that subsection to be removed from, or not to be re-entered in, the Register, the Registrar shall serve on him written notice of the decision within the prescribed period after the date of the decision. " .

121 Discipline

For section 7 of the 1931 Act substitute--

" 7 Unacceptable professional conduct and serious professional incompetence

(1) Where an allegation is made that a registered person is guilty of--

(a) unacceptable professional conduct (that is, conduct which falls short of the standard required of a registered person); or

(b) serious professional incompetence,

or it appears to the Registrar that a registered person may be so guilty, the case shall be investigated by persons appointed in accordance with rules made by the Board.

(2) Where persons investigating a case under subsection (1) find that a registered person has a case to answer they shall report their finding to the Professional Conduct Committee.

(3) Where the Professional Conduct Committee receives a report under subsection (2) in relation to a registered person, the Committee shall consider whether he is guilty of unacceptable professional conduct or serious professional incompetence.

(4) Before considering whether a registered person is guilty of unacceptable professional conduct or serious professional incompetence the Professional Conduct Committee shall--

(a) serve on him written notice outlining the case against him; and

(b) give him the opportunity to appear before the Committee to argue his case.

(5) At any such hearing the registered person is entitled to be legally represented.

(6) The Board may make rules as to the procedure to be followed by the Professional Conduct Committee in any proceedings under this section.

(7) If the Board does not make rules for the appointment of persons to investigate whether registered persons have been guilty of unacceptable professional conduct or serious professional incompetence, the Professional Conduct Committee shall consider such questions without any prior investigation.

7ZA Disciplinary orders

(1) The Professional Conduct Committee may make a disciplinary order in relation to a registered person if--

(a) it is satisfied, after considering his case, that he is guilty of unacceptable professional conduct or serious professional incompetence; or

(b) he has been convicted of a criminal offence other than an offence which has no material relevance to his fitness to practise as an architect.

(2) In this Act "disciplinary order" means--

(a) a reprimand;

(b) a penalty order;

(d) an erasure order.

(3) Where the Professional Conduct Committee makes a disciplinary order in relation to a person, the Registrar shall serve written notice of the order on the person as soon as is reasonably practicable.

(4) The Professional Conduct Committee shall, at appropriate intervals and in such manner as it considers appropriate, publish--

(a) the names of persons whom it has found guilty of unacceptable professional conduct or serious professional incompetence or in relation to whom it has made a disciplinary order under subsection (1)(b); and

(b) in the case of each person a description of the conduct, incompetence or offence concerned and the nature of any disciplinary order made.

(5) Where, after considering the case of a registered person, the Professional Conduct Committee is not satisfied that he is guilty of unacceptable professional conduct or serious professional incompetence, it shall, if he so requests, publish a statement of that fact in such manner as it considers appropriate.

7ZB Penalty orders

(1) Where a penalty order is made in relation to a registered person, he shall pay to the Board the sum specified in the order.

(2) A penalty order may not specify a sum exceeding the amount which, at the relevant time, is the amount specified as level 4 on the standard scale of fines for summary offences.

In this subsection "the relevant time" means--

(a) in a case within subsection (1)(a) of section 7ZA, the time of the conduct or incompetence of which the registered person is found guilty; and

(b) in a case within subsection (1)(b) of that section, the time when he committed the criminal offence of which he has been convicted.

(3) A penalty order shall specify the period within which the sum specified in it is to be paid.

(4) If the person in relation to whom a penalty order is made does not pay the sum specified in the order within the period so specified, the Professional Conduct Committee may make a suspension order or an erasure order in relation to him.

(5) The Board shall pay into the Consolidated Fund any sum paid under a penalty order.

7ZC Suspension orders

Where a suspension order is made in relation to a registered person, the Registrar shall remove his name from the Register but shall re-enter it in the Register at the end of such period not exceeding two years as is specified in the order.

7ZD Erasure orders

(1) Where an erasure order is made in relation to a registered person, the Registrar shall remove his name from the Register and it shall not be re-entered in the Register unless the Board so directs.

(2) No application shall be made for the name of a person in relation to whom an erasure order has been made to be re-entered in the Register--

(a) before the end of the period of two years beginning with the date of the erasure order or such longer period specified in the erasure order as the Professional Conduct Committee considers appropriate in a particular case; or

(b) where he has made a previous application for his name to be re-entered in the Register, before the end of the prescribed period beginning with the date of the decision of the Board on that application.

(3) The Registrar shall serve on a person who applies for his name to be re-entered in the Register under this section written notice of the decision on his application within the prescribed period after the date of the decision.

(4) The Board may require a person whose name is re-entered in the Register under this section to pay a fee of a prescribed amount. " .

122 Code of practice

After section 7ZD of the 1931 Act insert--

" 7ZE Code of practice

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