Are You Fully Aware of Your Rights Under the Construction Act?

In episode 117 of The Subcontractors Blueprint podcast, host Jacob Austin provides UK construction business owners with a clear, practical overview of the Housing Grants, Construction and Regeneration Act and the Scheme for Construction Contracts. He explains key protections for subcontractors, including rights to interim payments, payment notices, pay less notices, suspension for non-payment, and fast-track dispute resolution through adjudication. Jacob emphasises the importance of written contracts but reassures listeners that statutory rights apply even without one. This episode empowers subcontractors to secure timely payments, maintain healthy cash flow, and confidently handle disputes in the UK construction industry. KEY TAKEAWAYS: The Construction Act and the Scheme for Construction Contracts provide crucial legal protections for UK subcontractors, ensuring fair and prompt payment. Subcontractors are entitled to interim payments, clear payment notices, and protection from unfair payment delays or reductions. Contractors must issue timely payment and pay less notices, or else the subcontractor is entitled to the full amount claimed. Subcontractors have the right to suspend work for non-payment and can claim extensions of time and reasonable costs for remobilisation. Statutory adjudication offers a fast-track, cost-effective way to resolve payment and contract disputes, even for oral agreements. "Pay when paid" clauses are generally outlawed, ensuring subcontractors are not left waiting for payment due to issues higher up the supply chain. BEST MOMENTS: "If the contractor misses that window or fails to issue a valid Payless notice, they can't by law short to pay you. And the law is really clear on that." "The law says that you can [suspend work for non-payment] without liability, meaning you won't be in breach of contract for stopping work in those circumstances." "Adjudication can be a game changer for subcontractors because it embodies that pay now, argue later ethos that we mentioned earlier by giving you a way to quickly secure payment or resolve disputes." "The Construction Act outlaws that, and any provision that makes your payment conditional on receipt of payment from a third party is ineffective." "Knowing these rules and asserting them at the right time will help you to ensure you get fully paid and on time for the work that you do."   Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on. HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to over £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories. LinkedIn - www.linkedin.com/in/jacob-austin/ Instagram - www.instagram.com/qs.zone/ www.qs.zone/all-links