The government set rules and regulations governing payment for construction works back in 1996, coming into force on 1 May 1998. Awareness of this construction payments scheme is low, and even lower in relation to the amendments to the scheme that came into force on 1 October 2011.
Often, lack of knowledge of and compliance with the construction payments scheme is not an issue as invoices are paid in full. However, many contractors are left out of pocket after they are not paid properly, or at all, or retention monies are not settled.
Conversely, where a subcontractor challenges a failure to pay properly for substandard work, a failure to comply with the construction payments scheme can give them an easy way to recover money they haven't properly earned.
Knowing what the construction payments scheme provides for can improve your cash flow and help you ensure that your subcontractors carry out work to the required standard, or remedy defects promptly.
The scheme requires contracts for construction works to contain certain provisions. If the contract does not, the default position for invoicing and payment set out by the scheme applies. Further, the legislation prohibits certain types of clauses which were, and remain, common in construction contracts.
By Guy Woodcock
If you don't have Microsoft Office, or Microsoft Word installed on your PC or Mac, don't worry - you can still use our products. You can get a free alternative from Open Office.
Open Office Org is open-source developed alternative to Microsoft Office, developed by a large software company called Oracle. Open Source means the company who build the software, allow 100% use of it, 100% free.
Since Open Office is specifically developed to be exactly the same as Microsoft Office, with all the same programs in the suite (Eg: Word, Excel, Access and Power Point) - it will freely open any Microsoft Office file-format. Meaning, just because a document was written in Microsoft Word, doesn't mean it can't be opened in another program. Open Office will do that, and vise versa.
To download and install Open Office;