Do your payment terms need to be revisited?
Do you know what the payment provisions are within your contract?
How do you ensure that you comply with the timeframes?
Are your payment terms compliant with the Scheme for Construction Contracts?
A recent Technology and Construction Court decision in the matter of Rochford Construction Limited v Kilhan Construction Limited [2020] EWHC 941 has left us with two vital takeaways:
- there needs to be certainty in your payment mechanisms; and
- linking the final date for payment to the issuing of a VAT invoice will fall foul of the Construction Act (and will therefore be invalid).
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Key takeaways from the Procurement Policy Notice 04/20 for those in the construction sector
PPN 04/20 provides essential considerations for those in the construction sector, acknowledging that Covid-19 is not a shot term crisis.
Partnership and transparency
Contracting authorities are reminded to continue to work in partnership with suppliers, to pay suppliers as promptly as possible and look to try to resolve disputes out of the courtroom. |