Local Democracy, Economic Development and Construction Bill [HL]—
Amendments to be debated in the House of Lordscontinued

House of Lords

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Clause 131

 

LORD GREAVES

 Lord Greaves gives notice of his intention to oppose the Question that Clause 131 stand part of the Bill.
 

Clause 132

 

LORD GREAVES

 Lord Greaves gives notice of his intention to oppose the Question that Clause 132 stand part of the Bill.
202[Withdrawn]
 

Clause 133

203[Withdrawn]
 

LORD BORRIE

203APage 75, line 21, leave out subsection (2)
 

Clause 134

204[Withdrawn]
 

LORD BORRIE

204ALeave out Clause 134 and insert the following new Clause—
  "Rights to refer disputes to adjudication and conduct of the adjudication
  In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), for section 108 (right to refer disputes to adjudication) substitute—
"108Right to refer disputes to adjudication and conduct of the adjudication
(1)  A party to a construction contract has the right to refer a dispute arising under the contract for adjudication.
(2)  The adjudication shall be conducted solely in accordance with the adjudication provisions of the Scheme for Construction Contracts.
(3)  Any contractual provision between the parties to a construction contract which adds to, omits, varies or excludes the provisions of the Scheme is ineffective.
 It is immaterial whether or not the contractual provision is contained in the construction contract.
(4)  Any contractual provision made between the parties to a construction contract which concerns the allocation as between those parties of costs relating to the adjudication of a dispute arising under the construction contract, including any provision requiring a party to provide security for any costs incurred by the other in the adjudication, is ineffective.
 It is immaterial whether or not the contractual provision is contained in the construction contract.
(5)  The adjudicator shall be permitted to correct his decision not later than seven days after the date of the decision is communicated to the parties so as to remove a clerical or typographical error arising by accident or omission.
(6)  To the extent that the adjudicator's decision requires a party to a construction contract to pay a sum of money to the other, the decision shall be enforced as if it were a debt irrespective of any counterclaim including any right to set-off or abatement.
(7)  For England and Wales, and Scotland, the Scheme may include provision conferring powers on courts in relation to adjudication and provision relating to the enforcement of the adjudicator's decision.""
 

Clause 135

 

BARONESS HAMWEE

204B*Page 76, line 5, at end insert—
"(   )  In the absence of an agreement under subsection (1) the adjudicator shall be entitled to the payment of such reasonable amount as he may determine by way of fees and expenses reasonably incurred by him and the parties shall be jointly and severally liable for any sum which remains outstanding following the making of any determination on how the payment shall be apportioned."
 

LORD BORRIE

 Lord Borrie gives notice of his intention to oppose the Question that Clause 135 stand part of the Bill.
 

Clause 136

205[Withdrawn]
 

LORD BORRIE

205APage 76, line 16, at end insert ", and
(c)  any entitlement, the issue of any certificate, notice or decision, or on the occurrence of any event under another contract"
 

After Clause 136

206[Withdrawn]
 

LORD BORRIE

206AInsert the following new Clause—
  "Conditional payment provisions: insolvency of a third party payer
  In the Housing Grants, Construction and Regeneration Act 1996 (c. 53) in section 113 (prohibition of conditional payment provisions), omit the following—
(a)  in subsection (1), "unless the third person, or any other person payment by whom is under the contract (directly or indirectly) a condition of payment by that third person, is insolvent", and
(b)  subsection (2),
(c)  subsection (3),
(d)  subsection (4), and
(e)  subsection (5)."
 

Clause 137

207[Withdrawn]
 

LORD BORRIE

207APage 77, leave out lines 1 to 3
208[Withdrawn]
 

LORD BORRIE

208APage 77, leave out lines 7 to 17
209[Withdrawn]
 

LORD BORRIE

209APage 77, line 23, leave out "(2)(a) or (b)" and insert "(2)(b)"
210[Withdrawn]
 

LORD BORRIE

210APage 77, line 34, leave out from beginning to end of line 15 on page 78
 

Clause 138

211[Withdrawn]
 

LORD BORRIE

211APage 78, line 24, leave out from "means" to end of line 33 and insert "the amount specified in a notice complying with section 110(3) which has been given pursuant to and in accordance with a requirement of the contract"
212[Withdrawn]
 

LORD BORRIE

212APage 78, line 34, at beginning insert "Not later than fourteen days after the payment due date,"
213[Withdrawn]
 

LORD BORRIE

213APage 78, line 40, at end insert ", and
(c)  the precise reasons that justify the difference between the sum in the payer's notice and that in the payee's notice."
214[Withdrawn]
 

LORD BORRIE

214APage 78, line 43, leave out from "(3)" to end of line 3 on page 79 and insert "must not be given before the notice referred to in subsection (2)"
215[Withdrawn]
 

LORD BORRIE

215APage 79, leave out lines 6 to 9
216[Withdrawn]
 

LORD BORRIE

216APage 79, leave out lines 25 to 32 and insert—
"(   )  Any contractual provision between the parties to a construction contract which seeks to exclude or oust the provisions of this section is ineffective.
(   )  It is immaterial whether or not the contractual provision is contained in the construction contract."
 

After Clause 139

217[Withdrawn]
 

LORD BORRIE

217AInsert the following new Clause—
  "Insolvency protection
  In the Housing Grants, Construction and Regeneration Act 1996 (c. 53), after section 113 (prohibition of conditional payment provisions) insert—
"113AInsolvency protection
(1)  A party to a construction contract may at any time request the other party to provide adequate security including bank guarantees and bonds in respect of payments of the contract price including the price of any varied or additional works.
(2)  Where a party fails to provide the adequate security as requested under subsection (1), the party making the request has the right to suspend any or all of his obligations under the construction contract with the party in default.
(3)  The right may not be exercised without first giving to the party in default at least seven days' notice of intention to suspend performance, stating that performance will be suspended unless, in the meantime, the security requested under subsection (1) is provided.
(4)  The right to suspend performance ceases when the party in the default makes available the security requested under subsection (1).
(5)  The consequences of the exercise of the right of the suspension under subsection (2) are as set out in subsections (3A) and (4) in section 112.""
 

Clause 142

 

LORD GRAHAM OF EDMONTON

218Page 80, line 41, at end insert—
"(d)  sections (Local freedoms) and (Honorary titles) (local freedoms and honorary titles) come into force at the end of the period of two months beginning with the day on which this Act is passed."
 

In the Title

 

LORD GRAHAM OF EDMONTON

219Line 3, after "tenants;" insert "to make provision about local freedoms and honorary titles;"

 
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23 February 2009