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DoE consults over construction bill
00:00 23 Mar 1995
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Legislation outlawing unfair contract terms is set to take a major
step forward with the publication of a consultation paper by the
DoE outlining proposals for a possible Construction Contracts Bill.
A draft of the consultative document went to Government ministers this week. A second consultative paper on reform of the liability law and latent defects insurance is also being prepared.
Both are to be published within the next few weeks. And industry responses will be co-ordinated by the newly-formed Construction Industry Board.
CIB chairman Sir Michael Latham said this week that industry would have two to three months to respond. 'I would then expect a mid-summer decision from the Government on whether to go ahead with legislation,' he said.
In that case, the Latham report timetable of the Royal Assent for a Bill by 1996 was still possible. Even in the event of an early General Election, Sir Michael suggested that any lapsed Bill might well be picked up by an incoming administration. The Labour Party had already indicated its support and did not regard the issue as a party political matter.
Sir Michael Latham was speaking after the second meeting of the CIB last Monday.
He reported that the split between the Building Employers Confederation and the Constructors Liaison Group over whether JCT main contract and subcontract documents should be revised in parallel was still outstanding. Failing agreement, the issue would go to mediation. But again it was unresolved as to whether that would be binding.
The CIB meeting agreed to increase its client representation to six, with one seat reserved for local authority clients. Philip Ward, head of the DoE construction directorate, has been seconded to the board on a part-time basis to strengthen its secretariat.
Two special subgroups have been formed to consider the board's possible longer term role. They will report back by May.
One possibility under consideration is that the board might assume a strategic role in the field of R&D.
Agreement has been reached on restructuring the Joint Contracts Tribunal on a 'college' basis. But there has been less progress with reform of the civil engineering equivalent. The two bodies have nonetheless at least held a first-ever joint meeting.
This week Sir Michael Latham has been discussing setting up separate client groups in Scotland and Northern Ireland. Separate boards are also under consideration.
Commenting on the general progress, Sir Michael said: 'It has been going better than I expected but not as well as I would ideally have hoped.'
A draft of the consultative document went to Government ministers this week. A second consultative paper on reform of the liability law and latent defects insurance is also being prepared.
Both are to be published within the next few weeks. And industry responses will be co-ordinated by the newly-formed Construction Industry Board.
CIB chairman Sir Michael Latham said this week that industry would have two to three months to respond. 'I would then expect a mid-summer decision from the Government on whether to go ahead with legislation,' he said.
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In that case, the Latham report timetable of the Royal Assent for a Bill by 1996 was still possible. Even in the event of an early General Election, Sir Michael suggested that any lapsed Bill might well be picked up by an incoming administration. The Labour Party had already indicated its support and did not regard the issue as a party political matter.
Sir Michael Latham was speaking after the second meeting of the CIB last Monday.
He reported that the split between the Building Employers Confederation and the Constructors Liaison Group over whether JCT main contract and subcontract documents should be revised in parallel was still outstanding. Failing agreement, the issue would go to mediation. But again it was unresolved as to whether that would be binding.
The CIB meeting agreed to increase its client representation to six, with one seat reserved for local authority clients. Philip Ward, head of the DoE construction directorate, has been seconded to the board on a part-time basis to strengthen its secretariat.
Two special subgroups have been formed to consider the board's possible longer term role. They will report back by May.
One possibility under consideration is that the board might assume a strategic role in the field of R&D.
Agreement has been reached on restructuring the Joint Contracts Tribunal on a 'college' basis. But there has been less progress with reform of the civil engineering equivalent. The two bodies have nonetheless at least held a first-ever joint meeting.
This week Sir Michael Latham has been discussing setting up separate client groups in Scotland and Northern Ireland. Separate boards are also under consideration.
Commenting on the general progress, Sir Michael said: 'It has been going better than I expected but not as well as I would ideally have hoped.'
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