The Statutory Scheme

Abstract

The Scheme is designed as a fall-back position; if the construction contract in question does not contain the adjudication provisions set out in s108, or if it does not include the payment provisions set out in s109 of the 1996 Act, then the provisions of the Scheme apply as implied terms of the contract (s114(4)). Although many of the standard forms of construction and engineering contracts now contain specific adjudication and payment provisions that comply with the Act, so the parties do not need to have regard to the Scheme, there are many construction contracts, particularly for smaller works, which do not contain such provisions.