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

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Powered by Lexis+®
Latest Construction News

Construction weekly highlights—24 July 2025

This week's edition of Construction weekly highlights includes the Court of Appeal (CoAs)’s decision in relation to NHBC Buildmark Choice policies confirming that the cause of action accrues when the insured party ‘has to pay more’ to complete the building work as a result of contractor insolvency (National House Building Council v Peabody Trust), Construction Leadership Council (CLC) guidance on Building Control Approval Applications for new higher-risk buildings, Ministry of Housing, Communities and Local Government (MHCLG) guidance on the Building Safety Levy, MHCLG’s announcement of legal deadlines for landlords to remediate unsafe cladding in social housing, a Royal Institution of Chartered Surveyors (RICS) consultation on it updated cladding valuation standard, a British Standards Institution (BSI) consultation on a new code of practice for bringing safe construction products to the market, a Technology and Construction Court (TCC) decision enforcing an adjudicator’s decision to award the responding party in the adjudication the notified sum (VMA Services v Project One), a CoA decision providing guidance on "costs directly incurred" in a waste management project agreement (Buckinghamshire Council v FCC Buckinghamshire Ltd), an update on the status of the Planning and Infrastructure Bill together with updated guidance from MHCLG on the same, the National Infrastructure and Service Transformation Authority (NISTA)’s interactive Infrastructure Pipeline tool, and publication of the Welsh Government’s circular on updated building control profession standards and codes.

View Construction by content type :

Popular documents