Builders · Contracts and scope

The Construction Act (HGCRA 1996) explained

The Construction Act gives contractors strong payment rights. But many London builders work for homeowners, and for them it usually does not apply.

Information, not legal advice. This guide explains official rules in plain words for England, with links to the sources. Rules change and every job is different, so check the source or get advice for your situation. Last checked 24 October 2026.

When it applies

Part II covers “construction contracts”: agreements to carry out construction operations, arrange them, or provide labour for them. It also covers architectural, design and surveying work (s.104).

It does not apply to a construction contract with a residential occupier. That means a contract mainly about work on a house or flat that one of the parties lives in or intends to live in (s.106). So it usually applies to work for developers, landlords who do not live in the property, businesses, and main contractors (subcontracts). It usually does not apply to a homeowner having work done on their own home.

What it gives you, where it applies

• Stage payments. You are entitled to instalment, stage or periodic payments unless the work is to last, or is estimated to last, less than 45 days (s.109).
• Clear payment dates. The contract must have an adequate mechanism for working out what is due and when, and a final date for payment (s.110). If it does not, the Scheme for Construction Contracts fills the gaps (s.109).
• Suspension. If a sum due is not paid as required, you can suspend work after giving at least 7 days' notice stating the grounds (s.112).
• No pay-when-paid. A term making your payment depend on the payer being paid by someone else is generally ineffective, unless that third party is insolvent (s.113).
• Adjudication. Either party can refer a dispute to adjudication at any time. The adjudicator should be appointed within 7 days of the notice, and decide within 28 days of referral (extendable). The decision is binding until the dispute is finally decided by court, arbitration or agreement (s.108).

For homeowner jobs

Write the equivalent protections into your contract: stage payments, due dates, what happens if a payment is late, and how disputes are handled. They must be fair to the consumer (CRA s.62).