The Construction Contracts (Northern Ireland) Order 1997

Explanatory Note

(This note is not part of the Order)

This Order is made only for purposes corresponding to those of Part II of the Housing Grants, Construction and Regeneration Act 1996.

The Order gives any party to a construction contract in Northern Ireland a right to refer disputes to a quick, impartial and investigative adjudication procedure. If no adequate procedure is agreed in the contract, one set out in a scheme made by the Department of the Environment will apply (Article 7).

The Order also—

(a) gives a contractor a statutory right to insist on payment by instalments where the work is to last 45 days or more (Article 8);

(b) requires construction contracts to provide a mechanism for determining the amount of payments and set a final date for payment of sums due (Article 9);

(c) obliges a payer to give a contractor notice with reasons, before the final date of payment, if he intends to withhold payment (Article 10); and

(d) makes unenforceable contract provisions which have the effect of making payment dependent upon receipt of payment from a third party, unless payment is delayed because a third party has become insolvent (Article 12).