Do Construction Contracts Need A Final Account Mechanism?

This Technology and Construction Court (TCC) case relates to the adequacy of the payment provisions within a construction contract, and whether the contractor was entitled to a “final account”, or whether its entitlement was limited to a series of interim payments. The case includes arguments as to whether the lack of a final account mechanism in a construction contract will lead to the Housing Grant, Construction and Regeneration Act 1996 (HGCRA) and associated Scheme for Construction Contracts (the Scheme) implying in such payment terms to the relevant contract. Ultimately, the TCC held that such arguments could not be decided conclusively in the context of a strike out or summary judgment application, but the judgement provides some helpful guidance nonetheless.