Timing of Payless Notices Is Crucial

  Arising from the Construction Act 2009, detailed provisions are in place to regularise stage or  periodic payments in construction projects, which might otherwise have been reduced or delayed to suit the employer .  One of the key provisions is that an employer who disagrees with the amount of a payment application, must issue a Payless Notice within a strict time frame. If he fails to do so on time, he must pay the sum applied for in full, as was confirmed in Galiford Try Building V Estura Ltd 2015. This though does not preclude an overpayment being corrected in continue reading

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CDM Regulations 2015 – More Bureaucracy!

Inspired by the EU, the Construction (Design and Management) Regulations 2007, have been updated and are due to come into force on 6th April this year. CDM Co- ordinators, are to be phased out completely by 6th October 2015. Their duties will now be split between the client, the principle contractor and a new role – the ‘principle designer’.  The ‘principle designer’ is a completely different role to the lead designer, who might for instance be an architect. His job will be concerned with managing health and safety during the design process and the production of the health and safety continue reading

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Section 106 Contributions Scrapped

The government has announced that councils in England will no longer be applying Section 106 charges on smaller residential building schemes. Charges would be scrapped that require a large payment and add considerable costs for developers seeking to build a small number of properties or individuals whobuild their own home It will now be cheaper and easier to build new properties or bring disused buildings back into use. In support, it has been said  that a number of building projects have been made unviable by councils applying exorbitant  charges, such as a £32,000 charge that was required to build a continue reading

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Major Contractors Cash Balances Depleted By The Recession

KPMG’s report ‘Construction Barometer; Recovery in sight’ includes an analysis of 14 tier 1 contractors during the period from 2007 to 2013. It reveals that at 2013, net cash balances were below half of their 2010 level. Richard Threlfall of KPMG said ‘ construction contractors have been struggling with some of the most difficult market conditions ever encountered and even now – with all evidence pointing to sustained recovery- the industry faces real profitability challenges’.

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