The HGCRA 1996 and energy projects—the issue of mixed contracts
Produced in partnership with Clarke Willmott LLP
The HGCRA 1996 and energy projects—the issue of mixed contracts

The following Construction guidance note Produced in partnership with Clarke Willmott LLP provides comprehensive and up to date legal information covering:

  • The HGCRA 1996 and energy projects—the issue of mixed contracts
  • Does the HGCRA 1996 apply to energy projects?
  • Should payment provisions for energy projects comply with the HGCRA 1996?
  • Adjudication provisions in the HGCRA 1996—an option for energy projects
  • A look into the future of the energy industry and use of the HGCRA 1996

This Practice Note considers the circumstances when the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996) applies to energy projects in the UK, and some of the issues that may arise in practice. For more information on the application of the HGCRA 1996 generally, see Practice Note: What is a construction contract under the HGCRA 1996?.

The HGCRA 1996 applies to all construction contracts (as defined therein) in England, Wales and Scotland. When drafting a contract, it is important to consider whether the works being carried out on site fall within the ambit of the HGCRA 1996 and therefore whether the contract should be compliant with it. This is a debate that frequently arises on energy projects where some or all of the works carried out may fall within the exclusions of the HGCRA 1996.

Does the HGCRA 1996 apply to energy projects?

In order for the HGCRA 1996 to apply to a contract, the contract must fall within the definition of 'construction contract' (HGCRA 1996, s 104), being a contract for the carrying out of (or arranging for, or providing labour for, the carrying out of) 'construction operations' (as defined in HGCRA 1996, s 105).

There are various activities which are excluded from the definition of ‘construction operations’, as set out in HGCRA 1996, s 105(2). In the context of