What happens if the Employer is late in making the advanced payment?
If the Employer is late in making the advanced payment, the financial consequences for the Contractor may be significant. For example, he may be unable to purchase or mobilise the Equipment he needs, which could delay the works and lead to him incurring additional costs. Therefore, the normal provision for interest on late payments (Clause 51.2) could be inappropriate and it is replaced by the assessment of the effects of the delay in making the advanced payment as a compensation event.