As the Housing, Grants & Construction Act does apply, the short form states that the ‘additional’ clauses on page 43 apply. However, the additional clauses under ‘Assessing the amount due’ (1.2 - 1.4) seem like they should ‘replace’ clauses in clause 50, rather than being additional as such. Is this correct or are they really ‘additional’.
Also, on page 43, Cl 1.1 (3) states final date for payment is 3 weeks after due date. This will conflict with Clause 51.1 won’t it?
I’m very confused.
Jonathan,
The amendments for HGCR are mostly additional, and only replace other clauses where they explicitly say so. As such 1.2 and 1.3 are additional, and deal with notice of payment under HGCR. This perhaps seems arcane, but soon becomes important if there is a payment dispute. 1.4 replaces ‘core’ 50.5.
On timescales, the final date for payment is defined by HGCR. Cl 1.1(3) confirms that. Cl 51.1 talks about a similar thing, but not the same thing. The reason for a difference is to allow the Contractor some space to know their costs prior to their payment application at one end of the process, and to be paid prior to paying their supply chain. ‘Pay when paid’ is illegal, but it is legitimate to set up a system within the Contract that should have positive cashflow. That’s what this tries to do.