Attending this week’s WIDAC “Procurement & Contractual Risk Workshop” facilitated by AJ & Co was an eye opener on some of the lesser known impacts of the new Building Industry Fairness (Security of Payment) Act 2017, aside from the Project Bank Accounts changes. We were fortunate enough to have Sarah Bird (AJ & Co Partner – Real Estate and Commercial) and Jonathon Hitchcok (AJ & Co Partner – Building and Construction) present at the workshop.
Our main takeaways from the night included understanding that the Acts & Legislation take precedence over the contract and adjudication has become an easier process for claimant but much more stringent for the respondent (and more expensive/detrimental to business too!). There are also a couple of different ways that the claimant can pursue adjudication and these can be done simultaneously (it’s no longer an either/or situation for making claims). And, understanding the supply chain responsibilities for products and their use (shared responsibility of defects).
Whilst this new legislation may not appear to have direct implications for some areas of the construction industry, it’s good to be across it regardless as the terms of defining those included in this new legislation are much broader and all encompassing!