- Project plans
- Project activities
- Legislation and standards
- Industry context
- Specialist wikis
Last edited 02 Oct 2020
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.
 Related articles on Designing Buildings Wiki
Featured articles and news
Helping communities preserve and enhance historic environments.
Creating comfortable climates despite extreme temperatures.
Study examines how adjustable arrangements can succeed.
Government announces plans to improve accessibility.
Resource addresses pandemic-related NEC4 contract issues.
Incorporating EDI into the provision of fair access.
Government announces global innovation strategy.
An architectural biography. Book review.
The house where the future king of France lived.
The teacher, architectural technologist and mum offers her insights.
Careful planning needed as supply chain issues continue.
The sensitive conversion of a neglected Cornwall structure.