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Construction Act payment provisions

Chris Holwell considers the games played by parties to construction contracts to manipulate payment requirements

8 March 2016

The Housing Grants, Construction and Regeneration Act 1996 was substantially amended with effect from October 2011. Soon afterwards, people started playing games with its provisions - some can be very expensive for the loser.

The typical contracts to which the Act applies are building and engineering contracts; the appointments of architects, engineers, and other construction professionals; and development agreements that do not also transfer a major interest in land.

The Act requires all such contracts to contain an 'adequate mechanism' to determine what payments become due and when. In a broad overview, the following provisions are included:

  • There must be a 'due date' for each payment;

  • There must be a 'final date' for each payment;

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