JCT Contracts - Advance Payment

JCT Contracts
1

Various JCT Contracts (Intermediate, Standard, D&B) allow for Advance Payment of the Contractor and generally an associated Advance Payment Bond. However this option isn’t available where the Employer is a Local or Public Authority, can anyone shed any light on the reason as to why this type of Employer is excluded?

Option X14 of the NEC has a similar condition, but does not appear to exclude it’s use for a Local or Public Authority, would an alternative be the use of the NEC form, or is the restriction as a result of the governance of the Authorities?

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Robert

There is no logic to the idea that only certain Employer’s have to make an advance payment. I imagine that its down to the fact that Local Authorities are good for the money. As you say there is no such conditionality in the NEC.

Maybe the authors of the JCT can provide the answer.

Best

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