The Local Democracy, Economic Development and Construction Act 2009 ("LDEDC Act") will come into force in England and Wales on 1 October 2011.
The LDEDC Act makes a number of fundamental amendments to the Housing Grants Construction and Regeneration Act 1996, which is the current legislation governing all “construction contracts”.
The key changes brought in by the LDEDC Act impact on the payment, suspension and adjudication provisions in all “construction contracts” entered into on or after 1st October 2011.
It is important to remember that the classification of a “construction contract” is actually broader than you may think – for example, all contracts for design-related services and maintenance works are likely to be classified as “construction contracts” under the current and amended legislation.
Lastly, don't forget that the LDEDC Act will also affect ‘call-off’ contracts under any existing framework agreements and will require changes to be made to draft documentation in current tender processes or sub-contracts being newly let beneath existing main contracts.
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