Unexpected amendments to the Construction Contracts Act

While the Construction Contracts Amendment Bill mostly includes amendments which had been anticipated by the construction industry (e.g. removing the distinction between residential and commercial construction contracts; extending the CCA to include consultants; trusts for retentions – click here for the Kensington Swan newsflash), the recent supplementary order paper (SOP 52) introduced further changes which are most unexpected.

These recent amendments are largely around the appointment of adjudicators and the adjudication process in sections 34, 35 and 82 (click here to view the Construction Contracts Amendment Bill, including with the proposed amendments in SOP 52). The changes appear to have emanated from within MBIE. One commentator has described the amendments as ‘the most ill-conceived proposed amendments that simply evidence a complete lack of understanding of the adjudication process and statutory interpretation‘.

Of greater concern is that the public won’t have a change to make submissions on these changes and nor will they be reviewed by a select committee.

[This post was written by Mary Haggie]

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