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JCT - Payment Notices for Final Accounts

0 votes
My client has issued a payment application 4 weeks after PC was received and called this application a final account.  This was submitted in the same manner as all previous interim applications.

The Employer has not provided any payment certificate or pay less notice relating to this application which was submitted almost 3 months ago.
Can we treat this (final account) payment application in the same manner as an interim payment application, ie. the notified sum becomes due.
asked Aug 15, 2019 in JCT Contracts by Sean (320 points)  

1 Answer

+1 vote
I'm going to assume that you are under the JCT DB contract as you mention the Employer previously issuing the payment certificate rather than the Architect/CA.

Generally, the final account application is treated similar to other interim payments; however, its due date is one month after the later of the end of the Rectification Period, the issue of the Notice of Completion of Making Good and the submission of the final statement (clause 4.24.5).

Clause 4.24.6 allows the Employer to dispute the contents of the final account statement any time up to the due date.

On that basis, the notified sum is not yet due and can still be disputed.

That being said, a final statement must contain certain information (clause 4.24.1 and .2) and if it doesn't then it may (emphasis on may) be deemed to be an interim application and, if it is, then the Employer would be out of time to issue a valid payment/payless notice.
answered Sep 22, 2019 by stevencevans (2,700 points)  
edited Jan 20 by Neil Earnshaw