Payment provisions of the Construction Act
Brewer, G.
Payment provisions of the Construction Act - 2003 - Contract Journal 418(6423) 24 April 2003, 22(1) Construction News (6816) 15 May 2003, 22(1) .
Recent case "Hills Electrical and Mechanical plc v Dawn Construction Ltd" (CSOH, 7 April 2003) raised the issue of the manner in which provisions of the scheme for the construction contracts may be imported into a contract in the event that certain payment provisions of that contract fail to comply with the Housing Grants, Construction and Regeneration Act 1996. When a third party employer became insolvent Hills (H) sued Dawn (D) for the money it claimed it was owed, despite D refusing to pay under a pay when paid clause. H argued the date for payment predated the insolvency. H failed as judge ruled that D had 28 days to pay, not 17 days as would have been correct under s110 of the 1996 Act. Concludes that where a contract fails to provide payment terms in accordance with the requirements of the Act, it is only the relevant provisions of the Scheme for Construction Contracts which will be imported into the subcontract in order to rectify the deficient term.
HOUSING GRANTS, CONSTRUCTION AND REGENERATION ACT 1996
BUILT ENVIRONMENT-BUILDING CONTRACT FORMS
PAY-WHEN-PAID CLAUSES
SCHEME FOR CONSTRUCTION CONTRACTS
HILLS ELECTRICAL AND MECHANICAL PLC V DAWN CONSTRUCTION LTD
Insolvency
Payment provisions of the Construction Act - 2003 - Contract Journal 418(6423) 24 April 2003, 22(1) Construction News (6816) 15 May 2003, 22(1) .
Recent case "Hills Electrical and Mechanical plc v Dawn Construction Ltd" (CSOH, 7 April 2003) raised the issue of the manner in which provisions of the scheme for the construction contracts may be imported into a contract in the event that certain payment provisions of that contract fail to comply with the Housing Grants, Construction and Regeneration Act 1996. When a third party employer became insolvent Hills (H) sued Dawn (D) for the money it claimed it was owed, despite D refusing to pay under a pay when paid clause. H argued the date for payment predated the insolvency. H failed as judge ruled that D had 28 days to pay, not 17 days as would have been correct under s110 of the 1996 Act. Concludes that where a contract fails to provide payment terms in accordance with the requirements of the Act, it is only the relevant provisions of the Scheme for Construction Contracts which will be imported into the subcontract in order to rectify the deficient term.
HOUSING GRANTS, CONSTRUCTION AND REGENERATION ACT 1996
BUILT ENVIRONMENT-BUILDING CONTRACT FORMS
PAY-WHEN-PAID CLAUSES
SCHEME FOR CONSTRUCTION CONTRACTS
HILLS ELECTRICAL AND MECHANICAL PLC V DAWN CONSTRUCTION LTD
Insolvency