Legislation introduced in both in Australia1 and England2 over the past 10 years has sought to improve the cash flow in the construction industry after a disastrous number of insolvencies following alleged “sharp” practices by employers, contractors and subcontractors alike (collectively referred to in this paper as “the Acts”). In both countries the Acts are also coming up for review and in each country in the past few years there have been many judgments in which judges have recommended the legislature to review a particular aspect of the legislation thus pointing the way to amendment as well as submissions from interested parties. Until such reviews result in amendment, substantial or otherwise, we must work with what we presently have.

The British Government has recently announced proposed amendments to the HGCRA 1996. In his statement to the House of Commons on 16 January 2006, the Minister of State for Industry and the Regions announced proposals concerning the construction industry payment and adjudication regime following a consultation process undertaken last year. The Rt Hon Alun Michael, MP, with Edwina Hart, AM, MBE, the Welsh Assembly Government Minister for Social Justice and Regeneration, said that the aim of the proposals was