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ARTICLE · 02 NOVEMBER 2023

Legal Developments In Construction Law: October 2023

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A construction contract provided for the final date for payment to be 21 days following the later of the due date or receipt of the contractor's VAT invoice...

United KingdomReal Estate and Construction
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1. Setting an HGCRA final date for payment – how to (and how not to)

A construction contract provided for the final date for payment to be 21 days following the later of the due date or receipt of the contractor's VAT invoice, but did that comply with s.110(1)(b) of the Housing Grants Act? If it did not, the Scheme would apply and the final date for payment would be 17 days from the due date.

The Act says, in s110(1)(a), that every construction contract shall provide an adequate mechanism for determining what payments become due under the contract, and when, while s110(1)(b) says that the parties are free to agree how long the period is to be between the date on which a sum becomes due and the final date for payment.

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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