87 Late payments

87 Late payments

Most construction contracts provide for a contractual rate of interest to be applied on late payments1. Where they do not, or where the contractual rate fails to provide a ‘substantial remedy’ for late payment, a party may have a right to claim interest at the statutory rate2 under the Late Payment of Commercial Debts (Interest) Act 19983. Interest runs from the day after the agreed date for payment of the debt. If there is no agreed date for payment, it runs from the expiry of a period of 30 days beginning with