Payment for construction - Revision history

Designing Buildings at 10:08, 9 August 2022

2022-08-09T10:08:26Z

← Older revision		Revision as of 10:08, 9 August 2022
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	See Fair payment practices for more information.		See Fair payment practices for more information.
−
−	~~[[File:DBWCTA_C_link_applications_for_payment_ebook.png\|link=https://hubs.la/H0NmSLy0]]~~

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

Designing Buildings at 08:17, 24 March 2022

2022-03-24T08:17:22Z

← Older revision		Revision as of 08:17, 24 March 2022
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	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

		+	* Barter.
	* Causes of construction disputes.		* Causes of construction disputes.
	* Construction invoice fraud.		* Construction invoice fraud.

Designing Buildings at 07:55, 4 February 2022

2022-02-04T07:55:41Z

← Older revision		Revision as of 07:55, 4 February 2022
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	See Fair payment practices for more information.		See Fair payment practices for more information.

−	[[File:~~DBWCTA C link applications for payment ebook~~.png\|link=https://hubs.la/H0NmSLy0]]	+	[[File:DBWCTA_C_link_applications_for_payment_ebook.png\|link=https://hubs.la/H0NmSLy0]]

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Causes of construction disputes.		* Causes of construction disputes.
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	* Payments to nominated sub-contractors.		* Payments to nominated sub-contractors.
	* Pay less notice.		* Pay less notice.
		+	* Payment holiday.
	* Payment schedule.		* Payment schedule.
	* Project bank accounts.		* Project bank accounts.

Designing Buildings at 10:48, 21 May 2021

2021-05-21T10:48:58Z

← Older revision		Revision as of 10:48, 21 May 2021
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	See Fair payment practices for more information.		See Fair payment practices for more information.
		+
		+	[[File:DBWCTA C link applications for payment ebook.png\|link=https://hubs.la/H0NmSLy0]]

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

Designing Buildings at 10:04, 22 October 2020

2020-10-22T10:04:05Z

← Older revision		Revision as of 10:04, 22 October 2020
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	See Fair payment practices for more information.		See Fair payment practices for more information.
−
−	~~[[File:C_link_applications_for_payment.png\|link=http://zpr.io/thm3g]]~~

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

Designing Buildings at 09:46, 15 September 2020

2020-09-15T09:46:29Z

← Older revision		Revision as of 09:46, 15 September 2020
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	See Fair payment practices for more information.		See Fair payment practices for more information.

−	[[File:~~C link applications for payment~~.png\|link=http://zpr.io/thm3g]]	+	[[File:C_link_applications_for_payment.png\|link=http://zpr.io/thm3g]]

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =
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	* The causes of late payment in construction.		* The causes of late payment in construction.

−	[[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Legislation]] [[Category:DCN_Policy]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

Designing Buildings at 10:01, 20 January 2020

2020-01-20T10:01:21Z

← Older revision		Revision as of 10:01, 20 January 2020
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	See Fair payment practices for more information.		See Fair payment practices for more information.
		+
		+	[[File:C link applications for payment.png\|link=http://zpr.io/thm3g]]

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

Editor at 16:08, 31 May 2019

2019-05-31T16:08:21Z

← Older revision		Revision as of 16:08, 31 May 2019
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	See Fair payment practices for more information.		See Fair payment practices for more information.

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

	* Causes of construction disputes.		* Causes of construction disputes.

Editor at 15:27, 12 April 2018

2018-04-12T15:27:51Z

← Older revision		Revision as of 15:27, 12 April 2018
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	* Payments relating to opening-up and testing the works.		* Payments relating to opening-up and testing the works.

−	Depending on the nature of the contract therefore, prices may be referred to as; fixed, firm, guaranteed maximum price, target cost, lump sum, measurement, open book and so on.	+	Depending on the nature of the contract therefore, prices may be referred to as; fixed, firm, guaranteed maximum price, target cost, lump sum, measurement, open book, and so on.

	== Payment process ==		== Payment process ==
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	* Payments to nominated sub-contractors.		* Payments to nominated sub-contractors.
	* Pay less notice.		* Pay less notice.
		+	* Payment schedule.
	* Project bank accounts.		* Project bank accounts.
	* Prompt payment code.		* Prompt payment code.

Designing Buildings at 17:06, 14 March 2018

2018-03-14T17:06:22Z

← Older revision		Revision as of 17:06, 14 March 2018
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	== Agreeing the price ==		== Agreeing the price ==
		+
		+	Prices are typically agreed by a tender process, during which the client issues details of the works required, and prospective suppliers submit prices and other information for consideration.
		+
		+	See Tender process for more information.

	The price agreed for construction works is often referred to as the ‘contract sum’. However, this sum is rarely ‘fixed’, and contracts will typically allow the price to change under certain circumstances:		The price agreed for construction works is often referred to as the ‘contract sum’. However, this sum is rarely ‘fixed’, and contracts will typically allow the price to change under certain circumstances:
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	* Variations: Most contracts will contain provision for the architect or contract administrator to issue instructions to vary the design, quantities, quality, sequence or working conditions.		* Variations: Most contracts will contain provision for the architect or contract administrator to issue instructions to vary the design, quantities, quality, sequence or working conditions.
	* Relevant events: A relevant event may be caused by the client (for example failure to supply goods or instructions), or may be a neutral event (such as exceptionally adverse weather) and may result in a claim for loss and expense by the contractor.		* Relevant events: A relevant event may be caused by the client (for example failure to supply goods or instructions), or may be a neutral event (such as exceptionally adverse weather) and may result in a claim for loss and expense by the contractor.
−	* Provisional sums: ~~An allowance~~ for a specific element of the works that is not defined in enough detail for tenderers to price.	+	* Provisional sums: These are allowances for a specific element of the works that is not defined in enough detail for tenderers to price.
−	* Fluctuations: A mechanism for dealing with inflation on projects that may last for several years where the contractor tenders based on current prices and then the contract makes provisions for the contractor to be reimbursed for price changes over the duration of the project.	+	* Fluctuations: A mechanism for dealing with inflation on projects.
	* Payments to nominated sub-contractors or nominated suppliers.		* Payments to nominated sub-contractors or nominated suppliers.
	* Statutory fees.		* Statutory fees.
	* Payments relating to opening-up and testing the works.		* Payments relating to opening-up and testing the works.
−	* Interim certificates
−	* Retention

−	Depending on the nature of the contract, prices may be referred to as; fixed, firm, guaranteed maximum price, target cost, lump sum, measurement, open book and so on.	+	Depending on the nature of the contract therefore, prices may be referred to as; fixed, firm, guaranteed maximum price, target cost, lump sum, measurement, open book and so on.

	== Payment process ==		== Payment process ==

−	The Housing Grants, Construction and Regeneration Act ~~1996~~ includes provisions to ensure that payments are made regularly and promptly throughout the supply chain. Interestingly, the Act does not stipulate payment periods, simply providing that parties are free to agree what payments are due and when, i.e. the contract must set out an adequate mechanism for determining these matters. If contracts do not comply with the Act~~, then~~, the Scheme for Construction Contracts applies.	+	The Housing Grants, Construction and Regeneration Act includes provisions to ensure that payments are made regularly and promptly throughout the supply chain. Interestingly, the Act does not stipulate payment periods, simply providing that parties are free to agree what payments are due and when, i.e. the contract must set out an adequate mechanism for determining these matters. If contracts do not comply with the Act, the Scheme for Construction Contracts applies.

−	Typically, regular payments are allowed for by interim certificates, generally valued by the cost consultant~~, perhaps having taken advice from the lead designer)~~. The client must honour ~~the certificate~~ within the period stipulated by the contract.	+	Typically, regular payments are allowed for by interim certificates, generally valued by the cost consultant. The client must honour interim certificates within the period stipulated by the contract.

−	See ~~interim~~ certificates for more information.	+	See Interim certificates for more information.

	== Retention ==		== Retention ==
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	Retention is a percentage (often 5%) of the amount certified as due to the contractor on an interim certificate, that is deducted from the amount due and retained by the client. The purpose of retention is to ensure that the contractor properly completes the activities required of them under the contract.		Retention is a percentage (often 5%) of the amount certified as due to the contractor on an interim certificate, that is deducted from the amount due and retained by the client. The purpose of retention is to ensure that the contractor properly completes the activities required of them under the contract.

−	Half of the amount retained is released on certification of practical completion ~~('substantial completion' for Institution of Civil Engineers (ICE) contracts)~~ and the remainder is released upon certification of making good defects ~~(or 'final statement' for design and build contracts such as Joint Contracts Tribunal (JCT) DB 16)~~.	+	Half of the amount retained is released on certification of practical completion, and the remainder is released upon certification of making good defects.

−	See ~~retention~~ for more information.	+	See Retention for more information.

	== Fair payment practices ==		== Fair payment practices ==
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	Construction 2025, the government's long-term vision for the future of the construction industry, cited equitable financial arrangements and certainty of payment as critical success factors for the industry and proposed a need to ‘...create conditions for construction supply chains to thrive by addressing access to finance and payment practices.’		Construction 2025, the government's long-term vision for the future of the construction industry, cited equitable financial arrangements and certainty of payment as critical success factors for the industry and proposed a need to ‘...create conditions for construction supply chains to thrive by addressing access to finance and payment practices.’

−	Measures undertaken to try to ensure fair payment ~~include~~:	+	Measures undertaken to try to ensure fair payment have included:

	* The Housing Grants, Construction and Regeneration Act.		* The Housing Grants, Construction and Regeneration Act.
−	* The Late Payment of Commercial Debts (Interest) Act	+	* The Late Payment of Commercial Debts (Interest) Act.
−	* The Late Payment of Commercial Debts Regulations	+	* The Late Payment of Commercial Debts Regulations.
−	* Construction Supply Chain Payment Charter	+	* Construction Supply Chain Payment Charter.
−	* Small Business, Enterprise and Employment Act	+	* Small Business, Enterprise and Employment Act.
	* Project bank accounts.		* Project bank accounts.
	* Prompt payment code.		* Prompt payment code.
		+	* Retention held in trust fund.

	See Fair payment practices for more information.		See Fair payment practices for more information.