157. Payment where work not completed.

157.     Payment where work not completed.

The issue of whether payment may be demanded prior to completion of work will depend as a matter of construction upon whether the contract consists of an entire obligation (sometimes called a 'lump sum contract') or divisible obligations1.

Where a person is employed to do work under a divisible contract, there is an express or implied agreement that payments will be made in proportion to the work performed2, unless a trade custom to the contrary can be proved3. Where the work is not completed, whether through the fault of the person contracted