The Cabinet Office has issued Information Note 1/2011
"Making fair payment in construction a requirement in central
government contracts - NEC Z Clause".
It is said that the Note reminds central government construction
clients of a decision taken in September 2009 to make fair payment
practices a contractual requirement in all their construction
contracts. This would extend to central government departments,
their agencies and Non-Departmental Public Bodies. In the wider
public sector these requirements are said to be recommended as best
practice. The fair payment provisions were previously outlined in
the "Guide to best 'Fair Payment' practices" -
Information Note 2/2010.
The Note provides for payments between the Employer and Main
Contractor to be made within 14 calendar days of the due date for
payment; Employer to Subcontractors (via Main Contractor) within 19
calendar days and Employer to Sub-subcontractors (through the
contractual chain) within 23 calendar