What are the terms of the contract?
This question can be answered by
looking at the express provisions in the contract.
Unless there is an express provision
in the contract that states the contractor will only be paid when the client
pays “pay when paid”), the client should still pay on time, or the provisions
of the late payment legislation will apply.
It has been the norm for construction
contracts to contain such provision, which means that even if the contractor
completes the job, payment is still subject to the client himself getting paid.
Such pay when paid clause will become
void when the Construction Industry & Payment Adjudication Act 2012 (“CIPPA
2012”) comes into force, and a default payment clause will be activated and it
may be reasonable to imply payment terms of 30 days or sooner.
