Last edited 15 Nov 2016

Construction operations

Contents

[edit] Introduction

In its widest sense, the term 'construction operations' might refer to any activity that contributes to the delivery of a construction project.

However, the term is defined more precisely by the Housing Grants, Construction and Regeneration Act 1996 (HGCRA, also known as the Construction Act), introduced to ensure that payments are made promptly throughout the construction supply chain and that disputes are resolved swiftly. Whether works set out in a contract are considered to be 'construction operation' for the purposes of the Act affects the parties' payment obligations as well as their right to adjudicate.

The Act suggests that 'Construction operations' include a very wide range of construction and engineering operations. However, activities such as mining, nuclear and power generation are expressly excluded, as are contracts with residential occupiers. Section 105 of Act sets out the precise definition.

[edit] Part 1

Part 1 defines 'construction operations' as:

[edit] Section A

'Construction, alteration, repair, maintenance, extension, demolition or dismantling of buildings, or structures forming, or to form, part of the land (whether permanent or not).'

[edit] Section B

'Construction, alteration, repair, maintenance, extension, demolition or dismantling of any works forming, or to form, part of the land, including (without prejudice to the foregoing):

  • Walls.
  • Roadworks.
  • Power-lines.
  • Telecommunication apparatus.
  • Aircraft runways.
  • Docks and harbours.
  • Railways.
  • Inland waterways.
  • Pipe-lines, reservoirs, water-mains, wells, sewers.
  • Industrial plant and installations for purposes of land drainage, coast protection or defence.'

[edit] Section C

'Installation in any building or structure of fittings forming part of the land, including (without prejudice to the foregoing), systems of:

  • Heating.
  • Lighting.
  • Air-conditioning.
  • Ventilation.
  • Power supply.
  • Drainage.
  • Sanitation.
  • Water supply or fire protection.
  • Security or communications systems.'

[edit] Section D

'External or internal cleaning of buildings and structures, so far as carried out in the course of their construction, alteration, repair, extension or restoration.'

[edit] Section E

'Operations which form an integral part of, or are preparatory to, or are for rendering complete, such operations as are previously described in this subsection, including:

[edit] Section F

'Painting or decorating the internal or external surfaces of any building or structure.'

[edit] Part 2

Part 2 defines activities that are not considered to be 'construction operations':

[edit] Section A

'Drilling for, or extraction of, oil or natural gas.'

[edit] Section B

'Extraction (whether by underground or surface working) of minerals; tunnelling or boring, or construction of underground works, for this purpose.'

[edit] Section C

'Assembly, installation or demolition of plant or machinery, or erection or demolition of steelwork for the purposes of supporting or providing access to plant or machinery, on a site where the primary activity is:

  • Nuclear processing, power generation, or water or effluent treatment.
  • The production, transmission, processing or bulk storage (other than warehousing) of chemicals, pharmaceuticals, oil, gas, steel or food and drink.'

[edit] Section D

'Manufacture or delivery to site of:

There is an exception to the above which is when they are 'under a contract which also provides for their installation.'

[edit] Section E

'The making, installation and repair of artistic works, being sculptures, murals and other works which are wholly artistic in nature.'

More information is provided in Appendix A of Construction Industry Scheme: a guide for contractors and subcontractors (CIS 340).


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