Last edited 04 Mar 2015

Default payment notice for construction

The Housing Grants, Construction and Regeneration Act 1996 (also known as the Construction Act) include provisions to ensure that payments are made promptly throughout the supply chain.

These provisions include:

  • The right to be paid in interim, periodic or stage payments.
  • The right to suspend (or part suspend) performance for non-payment and to claim costs and expenses incurred and extension of time resulting from the suspension.
  • Pay when certified clauses are not allowed, and the release of retention cannot be prevented by conditions within another contract.

In addition, there are specific provisions in relation to the procedures for making payments.

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