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JCT Contracts: Late Payments
Just a query regarding late payments. The three remedies that I can see in the contract (JCT DB 2016) are suspension, termination and ADR. Of course Interest will also accrue. I am just wondering whether there is another 'less nuclear' option in advance of suspension. Appreciate notification must be given in advance of Suspension but if this is issued, and still not resolved the Contractor must suspend. Is there another step before suspension card is pulled?
Nov 30, 2018
There aren't any other measures to my knowledge. Suspension would obviously give grounds for an extension of time. I think the 'less nuclear' options is to write to the EA to set out the interest that will/already has accrued on late payments, that suspension is a Relevant Event, that loss and expense will potentially accrue and that there is a risk that the supply chain has taken on other work during the period of a suspension, which may compound delay and affect quality
Dec 7, 2018
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Good answer here from Sam. JCT doesn't have such a well developed escalation provision as other forms but that doesn't mean you cannot create one as necessary so discussion with the EA and if the EA is the problem then direct contact with the Client. Jaw jaw not war war as the saying goes.
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