Construction Insolvency After The Final Date For Payment

The recent English Court of Appeal decision in Wilson and Sharp Investments Ltd v Harbour View Developments Ltd provides some judicial guidance on the interpretation of Section 111(10) of the Housing Grants, Construction and Regeneration Act 1996 (as amended) ("the Act"). This is an English Court of Appeal decision and so while not binding in Scotland it could be taken into account by Scottish courts.

Statutory background

The Act provides that a payment provided for in a construction contract is generally to be paid on or before the final date for payment – the Act includes an exception to this rule where the payee has become insolvent.  Section 111(10) of the Act sets out the insolvency related exception.