Construction Contracts (Amendment) Act (Northern Ireland) 2011
| Jurisdiction | Northern Ireland |
| Citation | 2011 NI c 4 |
| Year | 2011 |
(1) Article 6 of the 1997 Order (provisions applicable only to agreements in writing) is repealed.in paragraph (2) after “The contract shall” insert “ include provision in writing so as to ” ;in paragraphs (3) and (4) after “provide” insert “ in writing ”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) .(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—In Article 7 of the 1997 Order (right to refer disputes to adjudication) after paragraph (3) insert— 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.After Article 7 of the 1997 Order insert— 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.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, orit is made in writing after the giving of notice of intention to refer the dispute to adjudication.In Article 9 of the 1997 Order (dates for payment) after paragraph (1) insert— the performance of obligations under another contract, ora decision by any person as to whether obligations under another contract have been performed.In paragraph (1A) (a) and (b) the references to obligations do not include obligations to make payments (but see Article 12) .the construction contract is an agreement between the parties for the carrying out of construction operations by another person, whether under sub-contract or otherwise, andthe obligations referred to in that paragraph are obligations on that other person to carry out those operations.The requirement in paragraph (1) (a) to provide an adequate mechanism for determining when payments become due under the contract is not satisfied where a construction contract provides for the date on which a payment becomes due to be determined by reference to the giving to the person to whom the payment is due of a notice which relates to what payments are due under the contract.(1) The 1997 Order is amended as follows.(2) In Article 8 (entitlement to stage payments) in paragraph (4) for “under the contract” substitute “ provided for by the contract ” .paragraph (2) , andin paragraph (3) , the words “or (2) ”.(4) After Article 9 insert—
- “(1) This Order does not apply to a construction contract with a residential occupier (see paragraph (2) ) .
- (1A) 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.
- (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.
- (1A) 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) A construction contract shall, in relation to every payment provided for by the contract—
- (a) require the payer or a specified person to give a notice complying with paragraph (2) to the payee not later than 5 days after the payment due date, or
- (b) require the payee to give a notice complying with paragraph (3) to the payer or a specified person not later than 5 days after the payment due date.
- “payee” means the person to whom the payment is due;
- “payer” means the person from whom the payment is due;
- “payment due date” means the date provided for by the contract as the date on which the payment is due;
- “specified person” means a person specified in or determined in accordance with the provisions of the contract.
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