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ARTICLE · 25 OCTOBER 2020

Rochford Construction Ltd v Kilhan Construction Ltd [2020]

The recent case of Rochford Construction Ltd v Kihan Construction Ltd reinforces importance of clear payment dates and suggests that fixing the final date for payment by reference to an invoice...

IrelandReal Estate and Construction
James Vernon
James Vernon

The recent case of Rochford Construction Ltd v Kihan Construction Ltd reinforces importance of clear payment dates and suggests that fixing the final date for payment by reference to an invoice (as is the case in the NEC4 PSC) is inconsistent with the Construction Act.

Background

On 3 August 2018 Rochford Construction Ltd ("Rochford") and Kilhan Construction Ltd. ("Kilhan") entered into a subcontract for the construction of a reinforced concrete frame. The subcontract stated as follows:

"Works are lump sum . RCL will issue activity schedule to KCL, application date end of month . commercial . valuations monthly as per attached payment schedule end of month. Payment terms thirty days from invoice as per attached payment schedule. S/C payment cert must be issued with invoice."

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