Construction Contracts Act 2002 Under Review
Building and Construction Minister Maurice Williamson has released a discussion document on the Construction Contracts Act 2002 today, 4.11.10.
The Act regulates progress payments under construction contracts and provides an adjudication process for people with building disputes.
The Act is being reviewed in response to feedback received through the Building Act review.
"The submissions we received were very supportive of the Act's adjudication process but feedback suggests there is some confusion about the types of disputes that can be heard."
The Act currently excludes residential construction contracts from the clauses relating to progress payments and the enforcement of adjudication orders. This can expose residential consumers and contractors to more risk and can make it difficult for them to resolve disputes and obtain financial redress.
The discussion document asks if this exclusion is still relevant and if it should be removed.
"While the Act works reasonably well for people with commercial construction contracts, there is room for improvement. The application of the Act to residential constructions needs amending to increase and improve consumer protection so people carrying out residential building work are better equipped to use the Act to hold builders to account."
"We want to hear from people who have used the Act's adjudication process to resolve building disputes. This will help us to identify what's working well and to address those areas of the Act that require improvement."
The Construction Contracts Act 2002 (the Act) provides a legal framework for regulating progress payments under construction contracts and provides an adjudication process for people with building disputes.
The Department of Building and Housing invites you to share your experiences of the Construction Contracts Act 2002 (the Act). The purpose of this consultation is to find out how well the Act is working and to identify what parts of the Act are working well and to address those areas of the Act that require improvement.
Please note that this consultation closes on 16 December 2010.
The Construction Contracts Act 2002 Discussion Document asks you to:
• share your experiences of the Act
• provide feedback on the issues raised
• tell DBH what you think the solutions to those issues might beDownload the Construction Contracts Act 2002 Discussion Document [PDF 385 KB, 34 pages]
To provide feedback on the discussion document download and complete this submission form [RTF 974 KB, 9 pages]
Email to: email@example.com
Fax to: (04) 494 0290 (please put “Construction Contracts Act Review” in the subject line).
Post or courier to:Department of Building and Housing