Do you: 

  • understand the compulsory payment regime for construction contracts as set out in the Construction Act and the Scheme for Construction Contracts? 
  • appreciate the serious consequences of failing to adhere to these payment mechanisms? 
  • feel confident in working out deadlines for payments and applications?
  • recognise the different rules in relation to interim applications and final accounts?
  • understand the difference between a payment notice and a pay less notice; a due date and a final date for payment?

Aim

This course will provide an overview of the key aspects of payments under construction contracts, including the relevant legislation that covers the area. Disputes in construction are normally related to matters of payment. The consequences for the paying party of getting it wrong can be catastrophic. It is therefore critical from a risk management perspective that anyone entering into or administering a construction contract should have a comprehensive understanding of the rules for payments in construction contracts. 

The module will explain the impact on failing to correctly follow the rules and outline the key cases that have set precedents in this area. 

Learning outcomes

The objective of this workshop is for delegates to: 

  • understand the payment provisions contained within the Construction Act and the Scheme for Construction Contracts, and the rights and obligations upon payers and payees
  • identify and understand the risks involved for failing to adhere to payment provisions 
  • appreciate the decisions in recent cases in relation to payment
  • calculate how relevant due dates and payment dates correctly. 

Course outline 

  1. The basics 
    • Payment Notices
    • Pay-less Notices
       
  2. The legislation
    • Housing Grants, Construction and Regeneration Act 1996 / and the 2009 updates
    • Scheme for Construction Contracts
       
  3. Interim applications
    • Procedural Steps
    • ISG Construction Ltd v Seevic College [2014] EWHC 4007 (TCC) 
    • Galliford Try Building Ltd v Estura Ltd [2015] EWHC 2616 (TCC) 
       
  4. Final payment applications
    • Procedural steps
    • Harding (t/a MJ Harding Contractors) v Paice [2015] EWCA Civ 1231 
    • Kilker v Purton [2016] 2616 (TCC)
       
  5. Things to watch out for
    • Out of sync applications
    • Amending applications post a discussion 
    • Bank Holidays
    • Position Post-PC

To discuss your specific requirements and get a quote, please contact Andrew Rush on 01245 211326 or [email protected]

They always give clear specialist construction law advice applicable to our immediate requirements, promptly provided and well balanced with the commercial realities of the field in which we operate.

Chambers UK 2017