Training is key if construction firms are to avoid costly pitfalls of new legislation, warns law firm Prettys
Businesses involved in construction risk handicapping themselves commercially unless they get up-to-speed quickly with the latest legislation advises law firm Prettys. The Construction Act 2009 comes into force on 1 October and is aimed at releasing cash flow throughout the supply chain via a new payment regime and streamlined adjudication procedure. Failure to comply could prove costly in both time and money.
The new legislation represents the biggest shake-up in recent years for the sector, affecting contractors, sub-contractors and consultants.
Last Call For Nominations For The Industry's Top Diploma Providers “For those most directly affected, such as personnel working in accounts, it is vital that the complex details of the Act are understood and complied with” says Peter Blake, who heads the construction team and is a partner at Prettys: “The changes to the payment process in construction contracts is likely to confuse or catch-out the unprepared.Panasonic Growth Continues With A Trio Of Appointments Award Winners Put Hertfordshire On The Road To A Green Sustainable Future A Day In The Life Of A Female Construction Plant Apprentice Fire Performance Of New Residential Buildings Caroline Flint MP And Tom Greatrex MP Meet New Generation Of 'Renewables Apprentices' At Glasgow House Hertfordshire County Councils' Building Future Awards 2011. National Construction College Launches Training Programme For 2012 Search Launched To Find Outstanding Diploma Providers PLANTWORX - The Year That Was 2011 - A True Success Story.
“This is why it is imperative that staff are trained in working with the Act and so help them avoid pitfalls they might otherwise unwittingly fall into.
“Without training, omissions and mistakes could be made to the detriment of the business. Resolving any disputes that subsequently arise is, in many cases, likely to be complicated due to the inclusion of oral contracts in the adjudication regime under the new Act.
“It is crucial for all employees involved in the payment process to familiarise themselves with the changes and how these will be incorporated into future contracts.”
Errors that companies with untrained personnel will be vulnerable to, include:
· failure to appreciate the significance of a payment notice
· ignorance of the payee’s default notice provisions that trigger payment obligations even where no payment notice or certificate has been issued
· serving an old-style Withholding Notice instead of a new Pay Less Notice
· failing to appreciate that a payee’s Default Notice postpones the final date for payment - and then failing to issue a Pay Less Notice in time
· failing to set-out the basis on which the sum stated to be due is calculated
· not serving a Payment Notice because the sum due is zero – then facing a Default Notice from the payee
For further advice contact Peter Blake 01473 298206 or e-mail pblake@prettys.co.uk
|
| |||
|
||||
|
| Yourguide Ltd. All rights reserved Tel: +44 (0)1747 820022 Email: info@yourguides.net Sitemap |
|
||
|