79 Power to make further provision by regulations.
(1) The Secretary of State may by regulations make provision as to—
(a) the manner of making an application for home repair assistance and the contents of such an application;
(b) the procedure for dealing with applications for home repair assistance and for ensuring that works are carried out to any standard specified in the regulations;
(c) the way in which the amount of home repair assistance to be given on any application is to be determined; and
(d) the taking into account (in such manner and to such extent as may be prescribed) of the financial circumstances of the applicant.
(2) The Secretary of State may by regulations make provision extending or restricting the availability of home repair assistance, by reference to such description of persons, circumstances or other factors as the Secretary of State thinks fit.
(3) Regulations under subsection (2) may proceed wholly or in part by reference to the provisions relating to entitlement to housing benefit, or any other form of assistance, as they have effect from time to time.
In this Chapter the expressions listed below are defined by or otherwise fall to be construed in accordance with the provisions indicated—
disabled person | section 100(1) to (3)
dwelling | section 101
elderly | section 101
home repair assistance | section 76(1)
improvement | section 101
local housing authority | section 101
owner’s interest | section 101
partner | section 101
prescribed | section 101
renewal area | section 101
secure tenant | section 101
statutory tenant | section 101
tenancy and tenant (generally) | section 101
(1) The Secretary of State may pay contributions to local housing authorities towards such expenditure incurred by them under this Part as he may determine.
(2) The rate or rates of the contributions, the calculation of the expenditure to which they relate and the manner of their payment shall be such as may be determined by the Secretary of State with the consent of the Treasury.
(3) A determination under subsection (1) or (2)—
(a) may be made generally or with respect to a particular local housing authority or description of authority, including a description framed by reference to authorities in a particular area, and
(b) may make different provision in relation to different cases or descriptions of case.
(4) Contributions under this section shall be payable subject to such conditions as to records, certificates, audit or otherwise as the Secretary of State may, with the approval of the Treasury, impose.
(5) If, before the declaration of a renewal area, a local housing authority are satisfied that the rate of contributions which, in accordance with a determination under subsection (2), would otherwise be applicable to the authority will not be adequate, bearing in mind the action they propose to take with regard to the area, they may, before making the declaration, apply to the Secretary of State for contributions at a higher rate in respect of that area.
(6) An application under subsection (5) shall be made in such form and shall contain such particulars as the Secretary of State may determine; and, if such an application is made, the authority shall not declare the area concerned to be a renewal area until the application is approved, refused or withdrawn.
(7) If an application under subsection (5) is approved, the Secretary of State may pay contributions under subsection (1) in respect of the area concerned at such higher rate as he may determine under subsection (2).
(1) Where the Secretary of State has paid contributions under section 92 to a local housing authority, he may recover from the authority such amount as he determines to be appropriate in respect of repayments of grant under this Part.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) The amount shall be calculated by reference to the amount appearing to the Secretary of State to represent his contribution to—
(a) grants in respect of which repayments have been made to the authority, or
(b) grants in respect of which repayments could have been recovered if reasonable steps had been taken by the authority,
together with an appropriate percentage of any interest received by the authority, or which would have been received if reasonable steps had been taken by the authority.
(4) The question what steps it would have been reasonable for the authority to take shall be determined by the Secretary of State.
In determining whether the authority took reasonable steps, the Secretary of State may consider whether the authority properly exercised its discretion not to demand repayment of grant or to demand payment of a lesser sum.
The consent of the Secretary of State for the purposes of—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) section 34(6)(b), 44(3)(a), 51 or 52 (conditions imposed with consent of Secretary of State),
may be given either generally or in relation to any one or more specified authorities or descriptions of authority or in relation to particular cases or descriptions of case.
(1) Sections 19 and 21 to 22A (conditions for application for grant) do not apply to—
(a) an application for a grant in respect of glebe land or the residence house of an ecclesiastical benefice, or
(b) an application for a grant made by a charity or on behalf of a charity by the charity trustees of the charity.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) In considering under section 31 the amount (if any) of the grant where the applicant is a charity or the application is in respect of glebe land, the local housing authority shall have regard, in addition to the matters mentioned in that section, to any obligation or practice on the part of the applicant to let dwellings at a rent less than that which could be obtained on the open market.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) In this section “charity” does not include a private registered provider of social housing or a registered social landlord but otherwise has the same meaning as it has under section 10 of the Charities Act 2011.
98 Members of a person’s family and connected persons.
(1) Section 113 of the Housing Act 1985 (meaning of “members of a person’s family”) applies in determining whether a person is a member of another’s family for the purposes of this Part.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) In this Part “owner”, in relation to a dwelling, means the person who—
(a) is for the time being entitled to receive from a lessee of the dwelling (or would be so entitled if the dwelling were let) a rent at an annual rate of not less than two-thirds of the net annual value of the dwelling; and
(b) is not himself liable as lessee of the dwelling, or of property which includes the dwelling, to pay such a rent to a superior landlord.
(2) For this purpose the net annual value of a dwelling means the rent at which the dwelling might reasonably be expected to be let from year to year if the tenant undertook to pay all usual tenant’s rates and taxes and to bear the cost of repair and insurance and the other expenses, if any, necessary to maintain the dwelling in a state to command that rent.
(3) Any dispute arising as to the net annual value of a dwelling shall be referred in writing for decision by the district valuer.
In this subsection “district valuer” has the same meaning as in the Housing Act 1985.
(1) For the purposes of this Part a person is disabled if—
(a) his sight, hearing or speech is substantially impaired,
(b) he has a mental disorder or impairment of any kind, or
(c) he is physically substantially disabled by illness, injury, impairment present since birth, or otherwise.
(2) A person aged eighteen or over shall be taken for the purposes of this Part to be disabled if—
(za) the person is registered in a register maintained under section 77(1) or (3) of the Care Act 2014 (registers of sight-impaired adults, disabled adults, etc.),
(zb) in the opinion of the social services authority, the person falls within a category mentioned in section 77(4) of that Act (persons for whom register may be maintained),
(a) the person is registered in a register maintained under section 18(5) of the Social Services and Well-being (Wales) Act 2014 (register of disabled adults and adults with an impairment or who have needs for care and support), or
(b) in the opinion of the social services authority, the person falls within a category mentioned in section 18(6) of that Act.
(3) A person under the age of eighteen shall be taken for the purposes of this Part to be disabled if—
(a) he is registered in a register of disabled children maintained under paragraph 2 of Schedule 2 to the Children Act 1989, or
(b) he is in the opinion of the social services authority a disabled child as defined for the purposes of Part III of the Children Act 1989 (local authority support for children and their families).
(c) the person is registered as disabled in a register maintained under section 18(4) of the Social Services and Well-being (Wales) Act 2014, or
(d) the person is, in the opinion of the social services authority, disabled as defined for the purposes of section 3 of the Social Services and Well-being (Wales) Act 2014.
(4) In this Part “social services authority” means—
(a) in England, the council which is the local authority for the purposes of the Local Authority Social Services Act 1970, and
(b) in Wales, the council which is the local authority for the purposes of the Social Services and Well-being (Wales) Act 2014,
for the area in which the dwelling or building is situated.
(5) Nothing in subsection (1) above shall be construed as affecting the persons who are to be regarded as having a disability for the purposes of section 77 of the Care Act 2014 or as disabled under ... section 17(11) of the Children Act 1989 or section 3 of the Social Services and Well-being (Wales) Act 2014 ....
In this Part—
“development corporation” has the same meaning as in the Housing Act 1985;
“dwelling” means a building or part of a building occupied or intended to be occupied as a separate dwelling, together with any yard, garden, outhouses and appurtenances belonging to it or usually enjoyed with it;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“housing action trust” means a housing action trust established under Part III of the Housing Act 1988 and includes any body established by order under section 88 of the Housing Act 1988;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“introductory tenancy” and “introductory tenant” have the same meaning as in Chapter I of Part V of the Housing Act 1996;
“local authority” and “local housing authority” have the same meaning as in the Housing Act 1985;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
...
“owner”, in relation to a dwelling, has the meaning given by section 99 . . . ;
“owner’s interest”, in relation to any premises, means—
an estate in fee simple absolute in possession, or
a term of years absolute of which not less than five years remain unexpired at the date of the application,
whether held by the applicant alone or jointly with others;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“prescribed” means prescribed by regulations made by the Secretary of State;
“registered social landlord” has the same meaning as in Part I of the Housing Act 1996;
“renewal area” has the same meaning as in Part VII of the Local Government and Housing Act 1989;
“secure tenant” has the same meaning as in Part IV of the Housing Act 1985;
“statutory tenant” means a statutory tenant within the meaning of the Rent Act 1977 or the Rent (Agriculture) Act 1976;
“tenancy” includes a sub-tenancy and an agreement for a tenancy or sub-tenancy;
“tenant” includes a sub-tenant and any person deriving title under the original tenant or sub-tenant;
“urban development corporation” has the same meaning as in the Housing Act 1985 and includes any body established by order under section 165B of the Local Government, Planning and Land Act 1980.
(1) The provisions of Chapter 1 of this Part have effect in place of Part VIII of the Local Government and Housing Act 1989 (grants towards cost of improvements and repairs, &c.).
(2) Subject as follows, the provisions of that Part continue to apply to applications for grant of the descriptions mentioned in section 101 of that Act made before the commencement of this Part.
(3) Sections 112 and 113 of that Act (which require a local housing authority to approve certain grant applications) do not apply to an application under that Part made after 2nd February 1996 which has not been approved or refused before the commencement of this Part, unless—
(a) the six month period under section 116(1) of that Act (period within which applicant to be notified of decision) has elapsed before commencement, or
(b) the works were begun on or before 2nd February 1996—
(i) in an emergency, or
(ii) in order to comply with a notice under section 189, 190 or 352 of the Housing Act 1985.
(4) An application to which section 112 or 113 of the Local Government and Housing Act 1989 would have applied but for subsection (3) above shall be dealt with after the commencement of this Part as if those sections were omitted from Part VIII of that Act.
(5) The above provisions do not affect the power conferred by section 150(4) to make transitional provision and savings in relation to the commencement of this Part, including provision supplementary or incidental to the above provisions.
Supplementary and incidental provision may, in particular, be made adapting the provisions of Part VIII of that Act in the case of applications to which section 112 or 113 would have applied but for the above provisions.
(1) In this Part a “construction contract” means an agreement with a person for any of the following—
(a) the carrying out of construction operations;
(b) arranging for the carrying out of construction operations by others, whether under sub-contract to him or otherwise;
(c) providing his own labour, or the labour of others, for the carrying out of construction operations.
(2) References in this Part to a construction contract include an agreement—
(a) to do architectural, design, or surveying work, or
(b) to provide advice on building, engineering, interior or exterior decoration or on the laying-out of landscape,
in relation to construction operations.
(3) References in this Part to a construction contract do not include a contract of employment (within the meaning of the Employment Rights Act 1996).
(4) The Secretary of State may by order add to, amend or repeal any of the provisions of subsection (1), (2) or (3) as to the agreements which are construction contracts for the purposes of this Part or are to be taken or not to be taken as included in references to such contracts.
No such order shall be made unless a draft of it has been laid before and approved by a resolution of each of House of Parliament.
(5) Where an agreement relates to construction operations and other matters, this Part applies to it only so far as it relates to construction operations.
An agreement relates to construction operations so far as it makes provision of any kind within subsection (1) or (2).
(6) This Part applies only to construction contracts which—
(a) are entered into after the commencement of this Part, and
(b) relate to the carrying out of construction operations in England, Wales or Scotland.
(7) This Part applies whether or not the law of England and Wales or Scotland is otherwise the applicable law in relation to the contract.
(1) In this Part “construction operations” means, subject as follows, operations of any of the following descriptions—
(a) construction, alteration, repair, maintenance, extension, demolition or dismantling of buildings, or structures forming, or to form, part of the land (whether permanent or not);
(b) construction, alteration, repair, maintenance, extension, demolition or dismantling of any works forming, or to form, part of the land, including (without prejudice to the foregoing) walls, roadworks, power-lines, electronic communications apparatus, aircraft runways, docks and harbours, railways, inland waterways, pipe-lines, reservoirs, water-mains, wells, sewers, industrial plant and installations for purposes of land drainage, coast protection or defence;
(c) installation in any building or structure of fittings forming part of the land, including (without prejudice to the foregoing) systems of heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection, or security or communications systems;
(d) external or internal cleaning of buildings and structures, so far as carried out in the course of their construction, alteration, repair, extension or restoration;
(e) operations which form an integral part of, or are preparatory to, or are for rendering complete, such operations as are previously described in this subsection, including site clearance, earth-moving, excavation, tunnelling and boring, laying of foundations, erection, maintenance or dismantling of scaffolding, site restoration, landscaping and the provision of roadways and other access works;
(f) painting or decorating the internal or external surfaces of any building or structure.
(2) The following operations are not construction operations within the meaning of this Part—
(a) drilling for, or extraction of, oil or natural gas;
(b) extraction (whether by underground or surface working) of minerals; tunnelling or boring, or construction of underground works, for this purpose;
(c) assembly, installation or demolition of plant or machinery, or erection or demolition of steelwork for the purposes of supporting or providing access to plant or machinery, on a site where the primary activity is—
(i) nuclear processing, power generation, or water or effluent treatment, or
(ii) the production, transmission, processing or bulk storage (other than warehousing) of chemicals, pharmaceuticals, oil, gas, steel or food and drink;
(d) manufacture or delivery to site of—
(i) building or engineering components or equipment,
(ii) materials, plant or machinery, or
(iii) components for systems of heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection, or for security or communications systems,
except under a contract which also provides for their installation;
(e) the making, installation and repair of artistic works, being sculptures, murals and other works which are wholly artistic in nature.
(3) The Secretary of State may by order add to, amend or repeal any of the provisions of subsection (1) or (2) as to the operations and work to be treated as construction operations for the purposes of this Part.
(4) No such order shall be made unless a draft of it has been laid before and approved by a resolution of each House of Parliament.
106 Provisions not applicable to contract with residential occupier.
(1) This Part does not apply—
(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.
(1) The Secretary of State may by order provide that any or all of the provisions of this Part, so far as extending to England and Wales, shall not apply to any description of construction contract relating to the carrying out of construction operations (not being operations in Wales) which is specified in the order.
(2) The Welsh Ministers may by order provide that any or all of the provisions of this Part, so far as extending to England and Wales, shall not apply to any description of construction contract relating to the carrying out of construction operations in Wales which is specified in the order.
(3) The Scottish Ministers may by order provide that any or all of the provisions of this Part, so far as extending to Scotland, shall not apply to any description of construction contract which is specified in the order.
(4) An order under this section shall not be made unless a draft of it has been laid before and approved by resolution of—
(a) in the case of an order under subsection (1), each House of Parliament;
(b) in the case of an order under subsection (2), the National Assembly for Wales;
(c) in the case of an order under subsection (3), the Scottish Parliament.
(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 include provision in writing so as to —
(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 in writing 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.
(3A) 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.
(4) The contract shall also provide in writing 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 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.
108A Adjudication costs: effectiveness of provision
(1) This section 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.
(2) The contractual provision referred to in subsection (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.
(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 provided for by the contract include a payment by virtue of this section.
(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.
(1A) The requirement in subsection (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.
(1B) In subsection (1A)(a) and (b) the references to obligations do not include obligations to make payments (but see section 113).
(1C) Subsection (1A) does not apply where—
(a) 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, and
(b) the obligations referred to in that subsection are obligations on that other person to carry out those operations.
(1D) The requirement in subsection (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.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) If or to the extent that a contract does not contain such provision as is mentioned in subsection (1) ..., the relevant provisions of the Scheme for Construction Contracts apply.
(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 subsection (2) to the payee not later than five days after the payment due date, or
(b) require the payee to give a notice complying with subsection (3) to the payer or a specified person not later than five days after the payment due date.
(2) A notice complies with this subsection if it specifies—
(a) in a case where the notice is given by the payer—
(i) the sum that the payer considers to be or to have been due at the payment due date in respect of the payment, and
(ii) the basis on which that sum is calculated;
(b) in a case where the notice is given by a specified person—
(i) the sum that the payer or the specified person considers to be or to have been due at the payment due date in respect of the payment, and
(ii) the basis on which that sum is calculated.
(3) A notice complies with this subsection if it specifies—
(a) the sum that the payee considers to be or to have been due at the payment due date in respect of the payment, and
(b) the basis on which that sum is calculated.
(4) For the purposes of this section, it is immaterial that the sum referred to in subsection (2)(a) or (b) or (3)(a) may be zero.
(5) If or to the extent that a contract does not comply with subsection (1), the relevant provisions of the Scheme for Construction Contracts apply.
(6) In this and the following sections, in relation to any payment provided for by a construction contract—
“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.
110B Payment notices: payee's notice in default of payer's notice
(1) This section applies in a case where, in relation to any payment provided for by a construction contract—
(a) the contract requires the payer or a specified person to give the payee a notice complying with section 110A(2) not later than five days after the payment due date, but
(b) notice is not given as so required.
(2) Subject to subsection (4), the payee may give to the payer a notice complying with section 110A(3) at any time after the date on which the notice referred to in subsection (1)(a) was required by the contract to be given.
(3) Where pursuant to subsection (2) the payee gives a notice complying with section 110A(3), the final date for payment of the sum specified in the notice shall for all purposes be regarded as postponed by the same number of days as the number of days after the date referred to in subsection (2) that the notice was given.
(4) If—
(a) the contract permits or requires the payee, before the date on which the notice referred to in subsection (1)(a) is required by the contract to be given, to notify the payer or a specified person of—
(i) the sum that the payee considers will become due on the payment due date in respect of the payment, and
(ii) the basis on which that sum is calculated, and
(b) the payee gives such notification in accordance with the contract,
that notification is to be regarded as a notice complying with section 110A(3) given pursuant to subsection (2) (and the payee may not give another such notice pursuant to that subsection).
(1) Subject as follows, where a payment is provided for by a construction contract, the payer must pay the notified sum (to the extent not already paid) on or before the final date for payment.
(2) For the purposes of this section, the “notified sum” in relation to any payment provided for by a construction contract means—
(a) in a case where a notice complying with section 110A(2) has been given pursuant to and in accordance with a requirement of the contract, the amount specified in that notice;
(b) in a case where a notice complying with section 110A(3) has been given pursuant to and in accordance with a requirement of the contract, the amount specified in that notice;
(c) in a case where a notice complying with section 110A(3) has been given pursuant to and in accordance with section 110B(2), the amount specified in that notice.
(3) The payer or a specified person may in accordance with this section give to the payee a notice of the payer's intention to pay less than the notified sum.
(4) A notice under subsection (3) must specify—
(a) the sum that the payer considers to be due on the date the notice is served, and
(b) the basis on which that sum is calculated.
It is immaterial for the purposes of this subsection that the sum referred to in paragraph (a) or (b) may be zero.
(5) A notice under subsection (3)—
(a) must be given not later than the prescribed period before the final date for payment, and
(b) in a case referred to in subsection (2)(b) or (c), may not be given before the notice by reference to which the notified sum is determined.
(6) Where a notice is given under subsection (3), subsection (1) applies only in respect of the sum specified pursuant to subsection (4)(a).
(7) In subsection (5), “prescribed period” means—
(a) such period as the parties may agree, or
(b) in the absence of such agreement, the period provided by the Scheme for Construction Contracts.
(8) Subsection (9) applies where in respect of a payment—
(a) a notice complying with section 110A(2) has been given pursuant to and in accordance with a requirement of the contract (and no notice under subsection (3) is given), or
(b) a notice under subsection (3) is given in accordance with this section,
but on the matter being referred to adjudication the adjudicator decides that more than the sum specified in the notice should be paid.
(9) In a case where this subsection applies, the decision of the adjudicator referred to in subsection (8) shall be construed as requiring payment of the additional amount 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.
(10) Subsection (1) does not apply in relation to a payment provided for by a construction contract where—
(a) the contract provides that, if the payee becomes insolvent the payer need not pay any sum due in respect of the payment, and
(b) the payee has become insolvent after the prescribed period referred to in subsection (5)(a).
(11) Subsections (2) to (5) of section 113 apply for the purposes of subsection (10) of this section as they apply for the purposes of that section.
(1) Where the requirement in section 111(1) applies in relation to any sum but is not complied with,, the person to whom the sum is due has the right (without prejudice to any other right or remedy) to suspend performance of any or all 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 sum referred to in subsection (1).
(3A) Where the right conferred by this section is exercised, the party in default shall be liable to pay to the party exercising the right a reasonable amount in respect of costs and expenses reasonably incurred by that party as a result of the exercise of the right.
(4) Any period during which performance is suspended in pursuance of , or in consequence of the exercise 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) when it enters administration within the meaning of Schedule B1 to the 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 22 of the Bankruptcy (Scotland) Act 2016 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 Insolvency Act 1986, or
(b) on the sequestration of his estate under the Bankruptcy (Scotland) Act 2016 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.
(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.