- Project plans
- Project activities
- Legislation and standards
- Industry context
- Specialist wikis
Last edited 01 Oct 2020
Payment due date in the construction industry
The payer must issue a payment notice within five days of the due date for payment, even if no amount is due, setting out the sum that the payer considers to be or to have been due at the payment due date, and the basis on which that sum is calculated. Alternatively, if the contract allows, the payee may make an application for payment, which is treated as if it is the payment notice. The payer must issue a pay less notice if they intend to pay less than the amount set out in the payment notice, setting out the basis for its calculation.
The contract must also provide for a final date for payment in relation to any sum which becomes due. The parties are free to agree how long the period is to be between the date on which a sum becomes due and the final date for payment. The payer must pay the notified sum on or before the final date for payment.
Under the Scheme for Construction Contracts, if a construction contract fails to provide an adequate mechanism for determining when a payment becomes due, the payment shall become due, that is, payable on the later of 7 days after the assessment date or the making of a claim by the payee. The final date for payment is 17 days after the date that payment became due.
 Related articles on Designing Buildings Wiki
Featured articles and news
Exploring the key to the adoption of this abundant energy source.
His clients have ranged from Liberace to St Nick to world-class athletes.
These tactical structures can be permanent or temporary.
Organisation recognises milestones of the project's next phase.
Welding and metalworking businesses must manage respiratory risks.
New report explores how regulations are being put into action.
The golden thread and BS 8644-1.
Bitumen binder may delay road surface deterioration.
A varied portfolio of internationally recognised buildings.
Threatened by housing and expanding universities.
Getting "boots on the ground" to make things happen.
Building systems may begin to learn.
CIOB to recognise Client of the Year and Team of the Year.
PAS 9980 PAS 9980:2021 addresses fire risk appraisal and assessment.