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Housing Grants, Construction and Regeneration Act 1996

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[F1110APayment notices: contractual requirementsE+W+S

(1)A construction contract shall, in relation to every payment provided for by the contract—

(a)require the payer or a specified person to give a notice complying with subsection (2) to the payee not later than five days after the payment due date, or

(b)require the payee to give a notice complying with subsection (3) to the payer or a specified person not later than five days after the payment due date.

(2)A notice complies with this subsection if it specifies—

(a)in a case where the notice is given by the payer—

(i)the sum that the payer considers to be or to have been due at the payment due date in respect of the payment, and

(ii)the basis on which that sum is calculated;

(b)in a case where the notice is given by a specified person—

(i)the sum that the payer or the specified person considers to be or to have been due at the payment due date in respect of the payment, and

(ii)the basis on which that sum is calculated.

(3)A notice complies with this subsection if it specifies—

(a)the sum that the payee considers to be or to have been due at the payment due date in respect of the payment, and

(b)the basis on which that sum is calculated.

(4)For the purposes of this section, it is immaterial that the sum referred to in subsection (2)(a) or (b) or (3)(a) may be zero.

(5)If or to the extent that a contract does not comply with subsection (1), the relevant provisions of the Scheme for Construction Contracts apply.

(6)In this and the following sections, in relation to any payment provided for by a construction contract—

  • payee” means the person to whom the payment is due;

  • payer” means the person from whom the payment is due;

  • payment due date” means the date provided for by the contract as the date on which the payment is due;

  • specified person” means a person specified in or determined in accordance with the provisions of the contract.]

Textual Amendments

F1Ss. 110A, 110B inserted (1.10.2011 for E.W., 1.11.2011 for S.) by Local Democracy, Economic Development and Construction Act 2009 (c. 20), ss. 143(3), 148(8), 149 (with s. 149(3)(4)); S.I. 2011/1582, art. 2; S.I. 2011/1597, arts. 2, 3, S.S.I. 2011/291, art. 2

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