Payment

Payment

Payment is one of the most important issues in any construction contract for both the party making payments and the party receiving them. The construction industry has its own particular rules concerning payment by way of Part II of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996) and Part II of the Scheme for Construction Contracts (the Scheme). Parties dealing with construction contracts also need to be aware of a number of other issues which apply to construction contracts, including retention, loss and expense and provisional sums.

For a summary of the provisions of the HGCRA 1996 concerning payment, see Practice Note: Interim payments in construction contracts. For more detailed information, see Practice Notes: Interim payments in construction contracts and HGCRA 1996 payment provisions—key cases. In relation to the Scheme, see Practice Note: The Scheme for Construction Contracts.

For guidance in relation to the HGCRA 1996 more generally, see: HGCRA 1996—overview.

For consideration of the issues that frequently arise when negotiating provisions in relation to payment, see Practice Note: Negotiating a building contract—payment issues and for an

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