ABSTRACT
This chapter discusses the Payment Rules which are set out in sections 109–113 of the Housing Grants, Construction and Regeneration Act (HGCRA) and Part II of the Scheme. The background to the legislation is set out in a report published by Sir Michael Latham following a review of the contracting arrangements in the construction industry. In 2004, Sir Michael was asked to undertake a review of the working of the Act. This led to the production of reports on adjudication and payment, and consequently, provisions in the Local Democracy, Economic Development and Construction Act 2009, which amended the HGCRA. The HGCRA requires construction contracts to include terms which give effect to these provisions. Sections 104–107 of the HGCRA identify the requirements with which a ‘construction contract’ must comply before the payment provisions apply. The courts have also considered whether or not payment notices and pay less notices are required to be in writing.
