Sort out the ifs and whens
Series: Construction News ; (6745) 6 December 2001, 33(1)Publication details: 2001Subject(s): Summary: 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.| Item type | Current library | Call number | Copy number | Status | Barcode | |
|---|---|---|---|---|---|---|
| Journal article | London Journal article | ABS64981 (Browse shelf(Opens below)) | 1 | Available | 116497-1001 |
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.