Construction Contracts (Amendment) Act (Northern Ireland) 2011

Nº documento:2011 CHAPTER 4

An Act to amend the Construction Contracts (Northern Ireland) Order 1997.

[10 th February 2011]

BE IT ENACTED by being passed by the Northern Ireland Assembly and assented to by Her Majesty as follows:

Requirement for construction contracts to be in writing

  1. —(1) Article 6 of the 1997 Order (provisions applicable only to agreements in writing) is repealed.

    (2) In Article 7 of that Order (right to refer disputes to adjudication)—

    (a) in paragraph (2) after “The contract shall” insert “include provision in writing so as to”;

    (b) in paragraphs (3) and (4) after “provide” insert “in writing”.

    (3) In this Act “the 1997 Order” means the Construction Contracts (Northern Ireland) Order 1997 (NI 1).

    Power to disapply provisions of the 1997 Order

  2. —(1) Article 5 of the 1997 Order (provisions not applicable to certain contracts) is amended as follows.

    (2) For paragraph (1) and the heading to the Article substitute—

    “Application of this Order

  3. —(1) This Order does not apply to a construction contract with a residential occupier (see paragraph (2)).

    (1 A) The Department may by order provide that all or any of the provisions of this Order shall not apply to any other description of construction contract which is specified in the order.”.

    Adjudicator’s power to make corrections

  4. In Article 7 of the 1997 Order (right to refer disputes to adjudication) after paragraph (3) insert—

    “(3 A) The contract shall include provision in writing permitting the adjudicator to correct his decision so as to remove a clerical or typographical error arising by accident or omission.”.

    Adjudication costs

  5. After Article 7 of the 1997 Order insert—

    “Adjudication costs: effectiveness of provision

    7 A.—(1) This Article applies in relation to 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.

    It is immaterial whether or not the contractual provision is contained in the construction contract.

    (2) The contractual provision referred to in paragraph (1) is ineffective unless—

    (a) it is made in writing, is contained in the construction contract and confers power on the adjudicator to allocate his fees and expenses as between the parties, or

    (b) it is made in writing after the giving of notice of intention to refer the dispute to adjudication.”.

    Determination of payments due

  6. In Article 9 of the 1997 Order (dates for payment) after paragraph (1) insert—

    “(1 A) The requirement in paragraph (1)(a) to provide an adequate mechanism for determining what payments become due under the contract, or when, is not satisfied where a construction contract makes payment conditional on—

    (a) the performance of obligations under another contract, or

    (b) a decision by any person as to whether obligations under another contract have been performed.

    (1 B) In paragraph (1 A)(a) and (b) the references to obligations do not include obligations to make payments (but see Article 12).

    (1 C)...

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