HGCR Act 1996 - Applicability

© Daniel Atkinson 2001 29 September 2001

1  Section 104(6)

Section 104(6) provides that Part II of the Act relates to construction contracts which relate to the carrying out of construction operations in England, Wales and Scotland.

It is therefore necessary to examine the contract and identify construction operations as defined in Section 105(1). If these operations are not excluded by Section 105(2) and are carried out in England, Wales and Scotland, then the Act applies to the contract. It is not clear whether the Act is then intended to apply to other construction operations in the contract which are not carried out in England, Wales or Scotland, but it is suggested that this is the intention. The definition of “construction operations” is in relation to work at structures etc forming part of the land so it is difficult to envisage contracts with territorially mixed operations. This is particularly so since England, Wales and Scotland comprise an island.  If the construction is carried out in England but is transported to form part of land not above the low water mark of England, Wales or Scotland then it is not caught by the Act Staveley Industries plc v Odebrecht Oil & Gas Services Ltd (28 February 2001)TCC.

2  Section 104(7)

Section 104(7) provides that Part II of the Act applies whether or not the law of England and Wales or Scotland is otherwise the applicable law in relation to the contract.

3  Section 148

Section 148 defines the geographical extent of the Act and this makes clear that Part II extends to England, Wales and Scotland, but not to Northern Ireland.  Separate legislation has been enacted for Northern Ireland.