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Adjudication - Glossary of Terms

  1. Construction Contract
  2. Construction Operations
  3. The Scheme
  4. HGCRA
  5. Adjudicator Nominating Body
  6. Decision
  7. Residential Occupier
  8. Exclusion Order

Construction Contract (Part II HGCRA)

A "construction contract" means an agreement with a person for any of the following-

(a) the carrying out of construction operations;

(b) arranging for the carrying out of construction operations by others, whether under sub-contract to him or otherwise;

(c) providing his own labour, or the labour of others, for the carrying out of construction operations.

References to a construction contract include an agreement-

(a) to do architectural, design, or surveying work, or

(b) to provide advice on building, engineering, interior or exterior decoration or on the laying-out of landscape,in relation to construction operations.

References to a construction contract do not include a contract of employment (within the meaning of the Employment Rights Act 1996).

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Construction Operations (Part II HGCRA)

The term "construction operations" means, subject as follows, operations of any of the following descriptions

(a) construction, alteration, repair, maintenance, extension, demolition or dismantling of buildings, or structures forming, or to form, part of the land (whether permanent or not);

(b) construction, alteration, repair, maintenance, extension, demolition or dismantling of any works forming, or to form, part of the land, including (without prejudice to the foregoing) walls, roadworks, power-lines, telecommunication apparatus, aircraft runways, docks and harbours, railways, inland waterways, pipe-lines, reservoirs, water-mains, wells, sewers, industrial plant and installations for purposes of land drainage, coast protection or defence;

(c) installation in any building or structure of fittings forming part of the land, including (without prejudice to the foregoing) systems of heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection, or security or communications systems;

(d) external or internal cleaning of buildings and structures, so far as carried out in the course of their construction, alteration, repair, extension or restoration;

(e) operations which form an integral part of, or are preparatory to, or are for rendering complete, such operations as are previously described in this subsection, including site clearance, earth-moving, excavation, tunnelling and boring, laying of foundations, erection, maintenance or dismantling of scaffolding, site restoration, landscaping and the provision of roadways and other access works;

(f) painting or decorating the internal or external surfaces of any building or structure.

The following operations are not construction operations

(a) drilling for, or extraction of, oil or natural gas;

(b) extraction (whether by underground or surface working) of minerals; tunnelling or boring, or construction of underground works, for this purpose;

(c) assembly, installation or demolition of plant or machinery, or erection or demolition of steelwork for the purposes of supporting or providing access to plant or machinery, on a site where the primary activity is-

(i) nuclear processing, power generation, or water or effluent treatment, or

(ii) the production, transmission, processing or bulk storage (other than warehousing) of chemicals, pharmaceuticals, oil, gas, steel or food and drink;

(d) manufacture or delivery to site of-

(i) building or engineering components or equipment,

(ii) materials, plant or machinery, or

(iii) components for systems of heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection, or for security or communications systems,

except under a contract which also provides for their installation;

(e) the making, installation and repair of artistic works, being sculptures, murals and other works which are wholly artistic in nature.

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The Scheme

There are two versions of the Scheme:

  1. The Scheme for Construction Contracts (England and Wales) Regulations
  2. The Scheme for Construction Contracts (Scotland) Regulations

The adjudication provisions of the appropriate version will apply to any Construction Contract that does not comply with the mandatory provisions of Section 108 of the Housing Grants, Construction and Regeneration Act.

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The Housing Grants, Construction and Regeneration Act 1996. Part II introducing statutory adjudication became effective on 1 May 1998 when the enabling legislation was effected together with the Scheme.

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Adjudicator Nominating Body

Other than by agreement, a valid appointment of an adjudicator who is not named in a contract must be made by an Adjudicator Nominating Body such as RICS, CIArb, TeCSA. The nature of the Adjudicator Nominating Body will reflect the membership of the professional body. For instance the Royal Institution of Chartered Surveyors (RICS) will nominate a Chartered Surveyor.

If you are in any doubt about which ANB to choose please Ask Streetwise.

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An adjudicator's decision must be given within 28 days of the referral of a dispute or difference to him, extendable to 42 days with the agreement of the referring party and by any period with the agreement of both parties. The decision is binding until the dispute is finally decided by litigation, arbitration or agreement.

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Residential Occupier

At present the statutory right to adjudicate is not available in relation to a construction contract concerning works on a persons residence, although it would apply to work on another property where he did not live. However provisions for adjudication may be written into any contract.

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Exclusion Order

Certain contracts, although otherwise falling within the definition of a Construction Contract in the HGCRA are excluded from its effects by an Exclusion Order. The classes of contracts excluded are:

  1. Certain agreements under statute
  2. Private Finance Initiative Agreements
  3. Finance Agreements
  4. Development Agreements

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