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ARTICLE · 21 AUGUST 2024

Late Payments: You're Really On Thin Ice Now

Fenwick Elliott LLP
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This recent decision should sound as a stark warning to Employers under JCT contracts over the perils of failing to make payments on time.

United KingdomFinance and Banking
Paul Smylie
Paul Smylie
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Providence Building Services Ltd v Hexagon Housing Association Ltd [2024] EWCA Civ 962

This recent decision should sound as a stark warning to Employers under JCT contracts over the perils of failing to make payments on time. Overturning the first instance decision, the Court of Appeal held that the Contractor was entitled to terminate its employment based on just two late payments, each of which was rectified within 14 days.

Background

Hexagon Housing Association Limited ("Hexagon") engaged Providence Building Services Limited ("Providence") to construct a number of buildings under a contract (the "Contract") incorporating the 2016 JCT Design and Build Contract as amended by the parties.

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This article is taken from Fenwick Elliott's 2021/2022 Annual Review. To read further articles go to Fenwick Elliott Annual Review 2021/2022

This article is based on recent summaries from the Fenwick Elliott Dispatch, a monthly newsletter which highlights some of the most important legal developments during the last month, relating to the building, engineering and energy sectors. You can find further details here: https://www.fenwickelliott.com/knowledge-hub/dispatch-articles/

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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