The Construction Contracts Amendment Act 2015 – Professional Indemnity Insurance

When the Construction Contracts Act 2002 came into effect on 1 April 2003 it vastly improved payment and dispute resolution behaviours across the entire building industry. The Act applies to all construction work and parties cannot contract out. It has achieved cash flow through strict payment processes, and established adjudication as a fast-track dispute resolution process, with quick, effective payment enforcement. The Construction Contracts Amendment Act 2015 is the first revision to that Act, and is the culmination of some 5 years of industry lobbying and consultation.

The Amendment Act comes into force in three phases. The first includes sweeping changes to provisions for payment, adjudication and enforcement, with two further phases spread over the next year to allow time for the necessary adjustments to contracts and business practice. Phase 2 captures industry professionals, who were previously not covered by the Act, and phase 3 introduces a completely new retention regime.

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