Last edited 12 Apr 2018

Due date for payments in the construction industry

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

The 'due date' is the date when a payment becomes due, triggering the payment process. The due date is not the date that a payment should be received (that is the 'final date for payment'), it simply triggers the payment process. The agreed contract, or the time frames detailed in the Scheme for Construction Contracts, will define the due date(s).

A 'payment notice' should be served by the employer no later than 5 days after the due date, setting out the amount that they consider to be due, along with details of how this has been calculated.

The final date for payment is 14 days after the due date.

A pay less notice should be served no later than 5 days before the final date for payment if the employer intends to pay an amount that is less than that due.

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