Late Payment under Construction Contracts

 

The Late Payment of Commercial Debts Regulations 2013 (the “Regulations”) came into force on 16 March 2013. They apply to all commercial contracts, including construction contracts, entered into after this date. The Regulations amend the Late Payment of Commercial Debts (Interest) Act 1998 (the “Act”) by introducing new remedies for late payment.

Remedies for Late Payment For Contracts Entered Into Before 16 March 2013

The Act implies into contracts a statutory rate of interest on late payments of 8% above the Bank of England base rate. The Act also allows payees to recover a fixed sum as compensation for late payment of a debt. The fixed sums are £40 (for debts up to £999.99), £70 (for debts £1,000-£9,999.99) or £100 (for debts over £10,000).

Remedies for Late Payment For Contracts Entered Into After 16 March 2013

The Regulations implement EC Directive 2011/7/EU, which attempts to combat late payments in commercial transactions across the EU by increasing suppliers’ rights.

The Regulations introduce two new rights for payees which exist in addition to the rights already available under the Act:

1. A right for payees to claim the “reasonable costs” incurred in recovering the debt.

2. A right to claim statutory interest after 60 days.

These additional rights only apply to contracts entered into after 16 March 2013.

Ref Source: Hawkswell Kilvington www.hklegal.co.uk

Government to End Self build Tax - GIVE YOUR FEEDBACK

As you will by now be aware, on April 15th the Government announced that it proposes to exempt self builders from paying the Community Infrastructure Levy (CIL).
CIL, which was introduced under the Labour Government but began to be implemented by some councils in January 2012 (and now affects thousands of self builders in dozens of local authorities), raised a levy on new homes set at a standard charge per m² of new development. On average, self builders and developers affected by CIL were being asked to pay £100-150/m² – typically adding 10-15% onto build costs. Homebuilding & Renovating and NaSBA have been campaigning on this issue.

The result is that the Government now proposes to scrap CIL for self builders but, as part of the legislative process, has launched a consultation on the change. We are keen for as many self builders (all of whom could be affected by CIL charges in the future) and companies with an interest in the self build industry (which has seen many projects postponed or downsized as a result of CIL) to respond. If the consultation is not in favour of the self build exemption, CIL may well affect 1,000s of self builders in years to come.

NaSBA are co-ordinating the consultation process. We urge you to take two minutes to comment.

http://www.nasba.org.uk

Government to End Self Build Tax

On the 15th April 2013 the Housing Minister, Mark Prisk, announced that the Government proposes to exempt self builders from paying the Community Infrastructure Levy (CIL). There will be a 6-8 week consultation on the changes which will likely come into effect during the summer.
CIL, which was introduced under the Labour Government but began to be implemented by some councils in January 2012 (and now affects thousands of self builders in dozens of local authorities), raised a levy on new homes set at a standard charge per m² of new development. On average, self builders and developers affected by CIL were being asked to pay £100-150/m² – typically adding 10-15% onto build costs. In some areas the charge was significantly higher, and in many cases self builders were being faced with invoices for £20-40,000 as a condition of being granted planning approval.
Details of the criteria for the exemption have not yet been finalised, but it is expected to involve self builders declaring that their project is non-speculative before commencement, and have to provide evidence as the project completes (e.g. by having the completion certificate and title in their name) as well as a set period of occupation, proved by Council Tax payments. The changes will only apply to Local Authorities in England.
Homebuilding & Renovating first began to highlight the issue in late 2011 and since then has been vigorously campaigning with the National Self Build Association (NaSBA) for self builders to be excluded from the charge. Homebuilding & Renovating Editor Jason Orme lobbied the then Housing Minister Grant Shapps on the issue at a meeting in Downing St. in April 2012, and much behind-the-scenes work has been going on to ease the burden for people building their own homes.
CIL was originally designed to replace the complicated (and fully negotiable) raft of local planning obligations such as Section 106s and Affordable Housing Contributions, which will still affect self builders.

Government Revising Planning Permission

The Government has announced it is revising its proposals to grant permitted development rights for larger house extensions for a period of three years.
Communities Secretary Eric Pickles made the announcement in the Commons when MPs debated Lords amendments to the Growth and Infrastructure Bill.
During the debate the minister told MPs: “I can announce that in the spirit of consensus we will introduce a revised approach to the contentious question of permitted development rights for home extensions when the Bill returns to the Lords.
“If we cannot persuade the other House, the issue will return to the Commons next week so that Hon Members can debate and vote further.
“Given the discussions I have had with colleagues who have concerns, I believe that the problem is eminently bridgeable. I would like the opportunity to build that bridge.”
His comments came before the Commons voted to reject a Lords amendment which would have allowed councils to opt out of the new regime, a move opposed by Coalition ministers.
Earlier Planning Minister Nick Boles had insisted that the proposed reforms “should make it quicker, easier and cheaper for up to 40,000 families a year wishing to build small-scale, single-storey extensions and conservatories.”
18th April 2013

Planning Permission News

Planning Permission relaxation - update to follow

Last Chance to Read our Winter/Spring Newsletter Page1

Last Chance to Read our Winter/Spring Newsletter page2