Changes to Construction Act risk being shelved

Planned changes to the current Construction Act are at a "considerable risk" of being shelved by ministers, according to a senior source close to the discussions.

Changes to the Act have yet to be finalised by the 'sounding board' set up to look at modifying the current legislation to help improve issues such as adjudication and payment. It is now 15 months since the first consultation document was published by the Department of Trade & Industry (DTI).

The final document was due to go out to industry consultation in the spring and be concluded by the summer. Sign-off of the changes is expected to be made at a meeting of the board next week.

But one source told Contract Journal there was a real threat that ministers will shelve any changes to the act and leave the industry to sort it out itself.

Sir Michael Latham, who chairs the review's sounding board, told Contract Journal: "There is a question over where the changes to the Act lie in the pecking order for ministers. I can't fault the DTI as it has shown willing in pushing the changes forward. However, I share the concerns of the risks to these changes to the Act getting off the ground."

[Contract Journal, 19 July 2006, p. 3]