Govt goes cool on Latham law

Construction Minister Lord Ullswater has dropped a heavy hint that the Government may be backing off from introducing legislation to outlaw unfair contract terms by calling for alternative ideas.

The chances of legislation on this issue getting through Parliament this year are already looking increasingly slim as the result of a continuing delay in the publication of a Government consultation paper. The promised document now appears unlikely to appear much before the end of April.

The Government has, however, this week issued its consultation paper on proposed changes in the law of liability as it applies in construction. It develops the recommendations made by Sir Michael Latham in his report, Constructing the Team.

Lord Ullswater said: 'We are inviting comments not only on the specific legislative proposals, but also on numerous other related issues. In particular, we are looking for alternatives to legislation for achieving the Latham report's objectives in these areas.'

Supporters of a proposed Construction Contracts Bill had expected a consultation paper before Easter. Even then, they felt the consultation period would have to be short to meet the legislative timetable.

Responses to the document on latent defects liability and BUILD insurance are due by 31 May. Main proposals are -

n liability arising from latent defects to be sole liability based on the apportionment of fault;

n liability period to start from date of practical completion or effective occupation;

n 10-year limitation period for negligence actions in tort and in contract;

n clients' contractual rights in relation to costs of repair and reinstatement to be transferable to subsequent owners and tenants.