Sort out the ifs and whens
Atkinson, D
Sort out the ifs and whens - 2001 - Construction News (6745) 6 December 2001, 33(1) .
Discusses a recent decision, "Durabella v Jarvis", which established that a pay-when-paid clause is reasonable if the employer is insolvent. Subcontractors faced with non-payment and a pay-when-paid clause should establish whether the contract is covered by the Construction Act 1996 as 'if' clauses are unenforceable except in cases of insolvency and whether it is an 'if' clause (conditional on payment) or a 'when' clause (setting time for payment only). With an 'if' clause the subcontractor may not be able to enforce the clause if non-payment is due to the contractor's default. If non-payment is due to the breakdown of the main contract administration, the contractor may not be able to enforce the clause if he has not taken steps to enforce his right to payment.
SUBCONTRACTORS
PAY WHEN PAID CLAUSES
CONTRACTORS
NON-PAYMENT
DURABELLA V JARVIS
SMITH & SMITH GLASS LTD V WINSTONE ARCHITECTURAL CLADDING
THOMAS DYER & CO V BISHOP INTERNATIONAL ENGINEERING CO
Sort out the ifs and whens - 2001 - Construction News (6745) 6 December 2001, 33(1) .
Discusses a recent decision, "Durabella v Jarvis", which established that a pay-when-paid clause is reasonable if the employer is insolvent. Subcontractors faced with non-payment and a pay-when-paid clause should establish whether the contract is covered by the Construction Act 1996 as 'if' clauses are unenforceable except in cases of insolvency and whether it is an 'if' clause (conditional on payment) or a 'when' clause (setting time for payment only). With an 'if' clause the subcontractor may not be able to enforce the clause if non-payment is due to the contractor's default. If non-payment is due to the breakdown of the main contract administration, the contractor may not be able to enforce the clause if he has not taken steps to enforce his right to payment.
SUBCONTRACTORS
PAY WHEN PAID CLAUSES
CONTRACTORS
NON-PAYMENT
DURABELLA V JARVIS
SMITH & SMITH GLASS LTD V WINSTONE ARCHITECTURAL CLADDING
THOMAS DYER & CO V BISHOP INTERNATIONAL ENGINEERING CO