Construction Act Changes

Posted on November 21, 2011 by Professor Benfield There have been 0 comments

Verbal contracts now referred to in Adjudication

(An Alway Associates Advisory)

One of the features of the amendments to the Construction Act contained within Part 8 of the Local Democracy, Economic Development and Construction Act 2009 is that section 107 of the old Act has been repealed.

No need for writing ...

This means that it is no longer necessary for a contract to be wholly in writing or evidenced in writing in order for it to be referred to adjudication. So any new contract entered into from 1 October 2011 which is not fully recorded in writing could still be adjudicated on should a dispute arise in the future.

This had led many people to think that they can take their eye off the ball when preparing the documentation for contracts.

... but highly desirable

In practice it has produced the opposite.

The importance of making sure that everything that two parties wish to be contained in a contract is recorded has become even more important.

If this is not done and either of those parties resorts to arguing terms which it says were agreed verbally then the parties will find themselves in a difficult area with an uncertain outcome.

Costly Conclusion

It is also an area which could significantly increase costs.

The only conclusion to draw  therefore is that the change to the Construction Act actually makes it more imperative that contracts are properly recorded in writing in order to avoid expensive arguments from arising in future.

For more information

... on these issues please contact Michael Rowlinson, Alway Associates, 01295 275075 or email him at

This post was posted in News

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