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ARTICLE · 29 JUNE 2011

Fair Payment Z Clause Issued

The Cabinet Office has issued Information Note 1/2011 "Making fair payment in construction a requirement in central government contracts - NEC Z Clause".

United KingdomReal Estate and Construction

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

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