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Payment In Construction and Engineering Contracts

If you have an urgent payment problem about which you need advice please call us now on 01773 715062.

At Streetwise we are always looking to solve Specialist Sub-Contractor's problems. That includes subcontractors payment problems.

Specialist Sub-Contracting can be a tough business and it's no surprise that at some point you are going to bump into some sort of problem involving payment.

Free Debt Due or Dispute Service

This is an amazing Free Service for all Streetwise Buddies!

If you are having problems receiving payment of an Interim Application or Invoice we will action it on your behalf completely Free Of Charge.

Our Virtual Team have vast experience in resolving construction related payment problems and are available to help you get paid as quickly as possible.

Simply click on this link to see how!

You will be pleased to know that you can also find a wealth of information on Streetwisesubbie.com about avoiding and resolving your payment problems. Some of that information can be found further down this page but there are other sections that might be useful.

Please click here to go to the Contractual section.

If you already have a problem with a Contractor or Client regarding payment and you need help to find a solution please check out the Dispute Resolution Section for information that may help you to resolve the situation.

Please click here to go to the Dispute Resolution section. 

If you simply haven't got time to look or have any other problem whatsoever and you can't find what you are looking for, then why not use the Ask Streetwise or Streetwise Confidential feature on this site to ask our Virtual Team of experts for help with getting paid?

 

Remedies For Late or Non-payment 
 

The Construction Act has been of tremendous benefit to specialist subcontractors. 
 

Suspending Your Works 

Probably the biggest benefit included in the Act provides that if payment is not forthcoming in accordance with the contract terms then the subcontractor may subject to proper written notice suspend work until payment has been received. When money is in short supply it is often the sub-contractor who threatens to suspend work is the one who gets paid first! But you need to be careful and we would always recommend that you take advice before suspending performance.
 

Pay When Paid 

These clauses are intended to allow the main contractor to delay payment to his subcontractors until the money is received from the Employer and to avoid payment to the subcontractor entirely if the money isn't received from the Employer. Since the Act came into force such clauses are made “ineffective” unless non-payment is due to the insolvency of the Employer. You therefore need to know about the financial stability of the Employer! 
 

Late Payment 

If payment is made late interest becomes due on the outstanding money in accordance with Late Payment of Commercial Debts (Interest) Act 1998 which applies to all contracts as from 1st November 2002. The rate of interest payable is 8% above bank minimum lending rate unless the contract itself provides a substantial remedy for late payment. The contractual rate has to be in the region of an 8% for it to be regarded as substantial remedy. 
 

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