Under the JCT form, what event or contractual mechanism brings the interim payment cycle to an end and transitions the contract into the final account regime, such that no further interim due dates arise?
It depends on what form you are using. The JCT DB 2016 states that due dates are due 7 days from each Interim Valuation Date and that means you get Monthly Valuations all the way through to the Final Account Regime. This has resulted in a lot of smash and grab payment applications as the Employer often forgets this and ignores payment applications submitted after Practical Completion. Many Employers amend the standard drafting to say that you get one Interim Valuation at practical completion and one in the next month to pick up Works carried out in the lead up to Practical Completion that were not included in the previous application. The 2024 version has adopted the same approach.
Thanks Mike, we are on ICD 2016 D&B. My question really is what triggers the final account regime? Is it the issuing of the statement of final adjustments? Following the issuing of this does this bring the application and notices cycle to an end or can a contractor issue a notice after the issue of the statement?