Article Abstract:
Prompt payment litigation is being by-passed by UK construction contractors, despite a law being brought in by the government to avoid late-payment tactics. The Construction Act 1998 only applies to contracts signed after May 1, 1998, which allows all previous contracts to be subject to late-payment. Contractors use pay-when-certified and effective dating tactics to suspend payments. Such practices are widespread throughout the industry, with the law unable to prevent late-payment.
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Article Abstract:
Moves by the UK government to take firm action against bogus self-employment in the construction industry from Apr 05 1997 will push up costs for subcontractors by up to 20%. Many have already begun to attempt to pass higher costs on to contractors. Under new regulations, smaller contractors and subcontractors will have to take workers in bogus self-employment into direct employment, and will therefore have to pay additional costs, such as National Insurance.
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Article Abstract:
New legislation which aims to eliminate unfair construction contracts has received a cautious welcome by the construction industry. The bill could become law by July 1996. The legislation will outlaw set-off and pay-when-paid clauses (with the exception of in the event of company receivership) and will also enable disputes to be taken to an adjudicator. An overview of the effects of the new proposals is included.
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