Hi! Firstly apologies for what may be a silly question but we all have to start somwhere!
I have a subcontractor working under an NEC3 engineering and construction subcontract. In this subcontract we have an appendix of application dates, that sets out when the subcontractor should submit their application, due date for payment and final date for payment.
Something i am commonly told is that if a subcontractor fails to make an application it is my duty to assess the amount due and make a payment? Where in the contract would i find this?
Thanks in advance
Under the standard NEC3 form it is the responsibility of the Contractor to assess the amount due at clause 50.1. They may consider any payment application submitted (clause 50.4) but this would not be the ‘default’ payment notice, unless the Contractor fails to make an assessment.
Although the payment application is not a primary part of the ‘mechanism’ determining the date when a payment becomes due, contrasting with NEC4, it could be that your form of contract, (referring to the ‘appendix of application dates’), has been amended to include the payment application as part of the payment ‘mechanism’. You should check the wording, particularly at core clause 5 along with any corresponding ‘z-clauses’ to see if this is the case.