NEC4 Non Payment

NEC3 and NEC4 Contracts Payment
1

Pursuant to NEC4 clause 51.2 payment has not been made to our Contractor.

The Secondary Options do not include any Y Options, however Contract Data Part One has under payment ‘if the period in which payments is not three weeks and Y(UK)2 is not used, 34 days’ from the assessment date.

What would be the remedy for the Contractor as a result of non payment. I am familiar with Y(UK)2 and the ability to give notice and suspend works until payment is made with interest, also resulting in a Compensation Event to the Contractor.

There are no Z options on how to deal with the matter, and I am unsure if the Contractor can decide to suspend works.

Thanks

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2

if you are in the UK, and presuming you have a construction contract, then the Construction Act will apply. This Act contains provisions that would allow you to give notice and suspend part/all of the works

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3

Thank you Dave.

In a situation whereby the Site is located outside the UK, but the working areas are premises in the UK and the Site being outside the UK, would the same act apply to a Contractor in the UK. Or would local regulations where the Site is located take precedence for non payment?

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4

Hi, check the Contract Data Part 1 section 1 General for the “law of the contract”