Under the payment provisions in the JCT Design & Build contract, what are the key risks and benefits of advance payment?
The primary risk to the Employer is that it does not get its money back in the event of Contractor insolvency. This risk is limited by the use of an advance payment bond.
The primary benefit to the Employer is that it may obtain a greater variety of tenders or more competitive price if it takes a share of the cash flow risk from the Contractor.