Today the second tranche of changes to the Construction Contracts Act 2002 (CCA) come into effect. Any contracts for design, engineering or quantity surveying work entered into (or renewed) from today will be subject to the CCA.
This means that those providing design, engineering or quantity surveying work will have the rights and obligations imposed by the CCA. There are two main changes are that those providing these services can now:
- issue payment claims and use the recovery mechanisms under the CCA; and
- bring or be served with adjudication proceedings (quick dispute resolution method based on the papers).
This is a significant change for consultants and those who engage them. It is important that both consultants and principals understand the implications of the CCA and their rights under it.
If you would like to discuss the implications of this change on your business get in touch.