Main contractor’s discount - Revision history

Editor: Reverted edits by 185.120.54.109 (talk) to last revision by Designing Buildings

2022-01-25T11:13:01Z

Reverted edits by 185.120.54.109 (talk) to last revision by Designing Buildings

← Older revision		Revision as of 11:13, 25 January 2022
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	* Prompt payment code.		* Prompt payment code.
	* Remedies for late payment.		* Remedies for late payment.
−	* The causes late payment in construction.	+	* The causes of late payment in construction.

	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]		[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

185.120.54.109 at 11:06, 25 January 2022

2022-01-25T11:06:26Z

← Older revision		Revision as of 11:06, 25 January 2022
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	* Prompt payment code.		* Prompt payment code.
	* Remedies for late payment.		* Remedies for late payment.
−	* The causes of late payment in construction.	+	* The causes late payment in construction.

	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]		[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Designing Buildings at 09:24, 2 October 2020

2020-10-02T09:24:01Z

← Older revision		Revision as of 09:24, 2 October 2020
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	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.		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.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Construction supply chain payment charter.		* Construction supply chain payment charter.
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	* The causes of late payment in construction.		* The causes of late payment in construction.

−	[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Designing Buildings at 12:27, 30 March 2018

2018-03-30T12:27:31Z

← Older revision		Revision as of 12:27, 30 March 2018
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	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.		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.	+	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.

	= Find out more =		= Find out more =

Designing Buildings at 12:25, 30 March 2018

2018-03-30T12:25:34Z

← Older revision		Revision as of 12:25, 30 March 2018
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−	The term 'main contractor’s discount' (MCD) refers to a clause that can included in building subcontracts to encourage main contractors to pay their subcontractors within the period of time specified in the contract.	+	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 ~~is usually~~ deducted from any application for payment. The discount should be clearly stated on invoices, applications and accounts.	+	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.

−	~~There may be an~~ MCD ~~requirement when tendering as a subcontractor~~, ~~and~~ a ~~sum should be added to the cost estimate as a form~~ of ~~mark-up~~ to ~~arrive at a tender sum~~.	+	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.

	= Find out more =		= Find out more =

Designing Buildings at 12:15, 30 March 2018

2018-03-30T12:15:30Z

← Older revision		Revision as of 12:15, 30 March 2018
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−	~~Late payment of invoices is~~ a ~~problem for most suppliers~~ of ~~goods and services. In tough economic times the problem gets worse as cash retention becomes a greater priority. It is frequently the largest and most powerful client groups who are~~ the ~~worst culprits~~.	+	The term 'main contractor’s discount' (MCD) refers to a clause that can included in building subcontracts to encourage main contractors to pay their subcontractors within the period of time specified in the contract.

−	~~Main contractor’s~~ discount (MCD) is a clause that can be used in a building subcontract where the main contractor uses subcontractors for all or part of the construction. Its purpose is to encourage main contractors to pay their subcontractors within the period of time specified under 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 is usually deducted from any application for payment. The discount should be clearly stated on invoices, applications and accounts.
−		+
−	~~A discount of,~~ 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 is usually deducted from any application for payment. The discount should be clearly stated on invoices, applications and accounts.	+

	There may be an MCD requirement when tendering as a subcontractor, and a sum should be added to the cost estimate as a form of mark-up to arrive at a tender sum.		There may be an MCD requirement when tendering as a subcontractor, and a sum should be added to the cost estimate as a form of mark-up to arrive at a tender sum.

Editor: Created page with "Late payment of invoices is a problem for most suppliers of goods and services. In tough economic times the problem gets worse as cash retention becomes a greater priority. It is..."

2018-03-26T14:01:57Z

Created page with "Late payment of invoices is a problem for most suppliers of goods and services. In tough economic times the problem gets worse as cash retention becomes a greater priority. It is..."

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Late payment of invoices is a problem for most suppliers of goods and services. In tough economic times the problem gets worse as cash retention becomes a greater priority. It is frequently the largest and most powerful client groups who are the worst culprits.

Main contractor’s discount (MCD) is a clause that can be used in a building subcontract where the main contractor uses subcontractors for all or part of the construction. Its purpose is to encourage main contractors to pay their subcontractors within the period of time specified under the contract.

A discount of, 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 is usually deducted from any application for payment. The discount should be clearly stated on invoices, applications and accounts.

There may be an MCD requirement when tendering as a subcontractor, and a sum should be added to the cost estimate as a form of mark-up to arrive at a tender sum.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Construction supply chain payment charter.
* Fair payment practices.
* Mark-up.
* Payment.
* Payments to nominated sub-contractors.
* Prompt payment code.
* Remedies for late payment.
* The causes of late payment in construction.

[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]