Common use of Fair Payment Clause in Contracts

Fair Payment. This is a clause also aimed at improving how subcontractors are paid, similarly endorsed in the Government Construction Strategy 2016. Obligations are placed on the Contractor to assess and promptly pay subcontractors, and to ensure that these obligations are also included in their contracts with subcontractors. It should be noted that Fair Payment is a separate clause with the NEC Boilerplate document, whereas within JCT and PPC it is combined with the SME provisions to form ‘Conditions of Sub-Contracting’ (JCT) or ‘Supply Chain’ (PPC).

Appears in 4 contracts

Sources: Contract for the Appointment of a Contractor, Contract for the Appointment of a Contractor, Contract for the Appointment of a Contractor