Mixed reaction to bill

Industry reaction to the final form of the Housing Grants, Construction and Regeneration Bill, which received Royal Assent last week, has been mixed.

The Constructors Liaison Group, which represents specialist contractors, has generally welcomed the Bill, while the Institution of Civil Engineers claims it is a disappointment.

The CLG's view, expressed by chairman Allan McDougall, is: "So far, so good, but much remains to be done if Sir Michael Latham's dream of putting an end to the industry's disputes culture is to become a reality."

McDougall said the CLG was looking forward to the introduction of an independent review of insolvency protection. He also welcomed the Government's promise to monitor the success of the legislation.

But the ICE claims the Bill contains many defects. It particularly objects to a sub-clause permitting referral of a dispute to adjudication "at any time".

But ICE Director General Roger Dobson said that the phrase may encourage just the opposite. "The problem is that if there is a dispute festering, by saying it can be referred to adjudication 'at any time', firms could in fact hold the dispute over."

The Bill is unlikely to become law before April 1997, as the Government has yet to draw up the details of the Scheme for Construction Contracts. The Scheme will detail the adjudication and payment provisions set out in the Bill.