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CONSTRUCTION FOCUS: Can't pay or won't pay?

26 October 2017  

Statutory demands requiring payment of a debt cannot be used where there is a genuinely disputed debt, as John Starr explains

It can be extremely frustrating for a sub-contractor, or anyone else for that matter, not to get paid on time. Cash flow has long been recognised as the lifeblood of the construction industry. Indeed, it was cash flow (or the lack of it) that was the catalyst for the coming into force of the payment and adjudication provisions of the Housing Grants, Construction and Regeneration Act 1996 (as amended). The idea is that interim payments fall due regularly and have to be paid on time unless prior notice is given that the amount claimed is disputed. There is then a quick, 28-day adjudication procedure to enforce payment.

Additional Info

  • Case(s) Referenced:

    Angel Group Ltd v British Gas Trading Ltd [2012] EWHC 2702 (Ch)

    Breyer Group plc v RBK Engineering Ltd [2017] EWHC 1206 (Ch)