Main contractor’s discount
The term 'main contractor’s discount' (MCD) refers to a clause that can be included in building subcontracts to encourage main contractors to pay their subcontractors within the period of time specified in the contract.
A discount (typically, 2.5%) is deducted if the main contractor pays promptly, with the subcontractor able to recover the discount by adding an amount to the contract sum. The discount is applied to the value of works undertaken by the subcontractor and deducted from any application for payment. The discount should be clearly stated on invoices, applications and accounts.
MCD clauses were, until relatively recently, a feature of some standard forms of contract, but they have now generally been removed. They still however appear in some bespoke contracts, where they are not always related to prompt payment, but rather are seen as a management fee.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Investors in People: CIOB achieves gold
Reflecting a commitment to employees and members.
Scratching beneath the surface; a guide to selection.
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.
UK gov apprenticeship funding from April 2024
Brief summary the policy paper updated in March.
For the World Autism Awareness Month of April.
70+ experts appointed to public sector fire safety framework
The Fire Safety (FS2) Framework from LHC Procurement.
Project and programme management codes of practice
CIOB publications for built environment professionals.
The ECA Industry Awards 2024 now open !
Recognising the best in the electrotechnical industry.
Sustainable development concepts decade by decade.
The regenerative structural engineer
A call for design that will repair the natural world.
Buildings that mimic the restorative aspects found in nature.
CIAT publishes Principal Designer Competency Framework
For those considering applying for registration as a PD.
BSRIA Building Reg's guidance: The second staircase
An overview focusing on aspects which most affect the building services industry.
Design codes and pattern books
Harmonious proportions and golden sections.
Introducing or next Guest Editor Arun Baybars
Practising architect and design panel review member.
Quick summary by size, shape, test, material, use or bonding..
Comments