| 8.9 If the NEC (including its accompanying subcontract), following suggested amendments, is adopted as a normal procurement route for most construction work, or if the Standard Forms of the JCT and the CCSJC are amended to conform with the principles which I have suggested, many of the concerns expressed by clients, main contractors and subcontractors will be met. All parties in the construction process should then be encouraged to use those Standard Forms without amendment. To aid confidence land promote the use of such forms, their central provisions should be underpinned by legislation. This might best be done by a "Construction Contracts Bill" which extended inter alia unfair contracts legislation. The Bill should state that where one of the above Standard Forms (including subcontracts) is used, the following actions should be unfair or invalid: 1. any attempt to amend or delete the sections relating to times and conditions of payment, including the right of interest on late payment; 2. to seek to deny or frustrate the right of immediate adjudication to any party to the contract or subcontract, where it has been requested by that party (see also Chapter 9); 3. to refuse to implement the decision of the adjudicator; 4. to seek to exercise any right of set-off or contra charge without: a. giving notification in advance; b. specifying the exact reason for deducting the set-off; and c. being prepared to submit immediately to adjudication and accepting the result subject to (3) above. 5. To seek to set-off in respect of any contract other than the one in progress. 8.10 Some clients and contractors may still continue to use bespoke forms, even when generally acceptable Standard Forms have become available in accordance with this Report's recommendations. Points (2) to (5) above should therefore be declared unfair and invalid for all construction contracts (ie not only when Standard Forms are used). In addition, any attempt by a contractor to include a clause in a bespoke form with the effect of introducing "pay-when-paid" conditions should be explicitly declared unfair; and invalid. 8.11 Legislative provision should also be made (though this might be done by other means than unfair contract terms legislation) that clients should set up a secure trust fund. Details of this are contained in Chapter 10. |