The following Construction practice note provides comprehensive and up to date legal information covering:
This Practice Note provides an overview of what interim payments are, how the right to be paid (usually by monthly or stage/milestone payments) arises and the contractual mechanisms for interim payment. It also considers the need to ensure that interim payment mechanisms meet the requirements of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), and examines how the payment regime is dealt with in standard forms such as the JCT and NEC contracts.
See also Practice Notes: Payment in construction contracts under the HGCRA 1996 and Summary of payment provisions in the HGCRA 1996. For a list of key cases considering the payment provisions of the HGCRA 1996, see Practice Note: HGCRA 1996 payment provisions—key cases.
In relation to the JCT and NEC contracts, see also Practice Notes: JCT contracts—price and payment and NEC contracts—price and payment.
Construction projects can be worth millions of pounds, and the programme periods can stretch over months and years. Very few contractors would be able to complete such an undertaking if they had to wait until the works were completed before receiving any payment.
As a general rule, where a construction contract is for the completion of a specific item, it is generally accepted that only complete performance will discharge the contractor's obligations. However, since it would be unjust to insist that no payment is due
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ContractWhere a contract is made by two or more parties it may contain a promise or obligation made by two or more of those parties. Any such promise may be:•joint•several, or•joint and severalWhether an undertaking is joint, several, or joint and several in contract is a question of construction
Broadly, the doctrine of overreaching enables purchasers (which includes tenants and mortgagees) in good faith for money or money’s worth to rely solely on the legal title. In the case of registered land, this means the entries entered on the register of title, as it records ownership of the legal
This Practice Note examines:•why negative pledge clauses are used in commercial transactions •the consequences of breaching negative pledge provisions•how negative pledges are viewed in the context of security and quasi-security, and•key considerations when drafting a negative pledge clauseWhere
Company directors are not, by virtue only of their office as director, automatically entitled under company law to remuneration for services as a director or to reimbursement of expenses incurred in rendering such services. Power to pay directors remuneration for their services will need to be
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