Contractors – are payments being delayed?

The cumbersome title of the Housing Grants Construction and Regeneration Act 1996 may not sound exciting, but it has very useful content for contractors faced with delays in payment by their employers.

In so many cases the response by a contractor to persistent delays in payment is to pull off site. That may work to the contractor’s disadvantage – the employer may say that the contractor has repudiated the contract.

The part of this Act dealing with construction contains specific machinery under which, if there is not a specific contract, the dates for making payments are defined, and withdrawal from site may be justified if payments are not made. It is necessary to ensure that the right procedure is followed, and short formal notice given.

Responding to non-payment in the correct way will place a contractor in a very much stronger position.

For more information contact Simon Daw.

Filed: 24/02/2010 09:49:08