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NEC ECC: Termination of contract payments

0 votes
We have had our contract terminated and the client is withholding previous payments that we are still waiting for. Is this legally correct.
He stipulates that now the contract is terminated he doesn't have to pay any previous amounts until the termination deadline of 13 weeks.
asked Dec 13, 2017 in NEC3 and NEC4 Contracts by Julian Burt (120 points)  

1 Answer

0 votes
If amounts were certified prior to the Project Manager issuing a termination certificate then the provisions of the 'Construction Act' would still apply and payment would have to be made by the final due date, unless a formal notice was issued within the appropriate timescales.

The assessment by the PM after 13 weeks relates to the amount due on termination.

As a matter of interest (no pun intended) have a look at the Late Payment of Commercial Debt Regulations 2013 and calculate how much compensation you should be entitled to for late payment.

Most NEC contracts have clauses dealing with such a situation (late payment) but, from my previous research into this matter, it is more than likely that they are not actually compliant with the requirements of the Regulations, especially the amount of interest stated.
answered Dec 13, 2017 by Andrew WI (3,600 points)