Construction Law/Advance Payment

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Question
Hello John,

I am working as a subcontractor with a bespoke subcontract.
The Advance Payment provision states "The General Contractor and the Subcontractor agree on an advance payment against receipt of an advance payment invoice and Advance Payment Guarantee, in the sum of the advance payment prior to the transfer of the advance payment"

how much time after the Subcontractor (SC) has issued his advance payment invioce and Advance Payment Guarantee does the word "against" imply?

the works were origianlly planned to last 112 days.

I would say, being fair and reasonable that 1 week would be plenty of time for the GC (General Contractor) to issue the advance payment.

Regards
Marc

Answer
Dear Marc,

Thank you for this question.

Unless the contract specifies when the advance payment is to be made, I suggest that the default position is the time scale set out by the contract for any other payment.

I agree that on a short timescale project it is reasonable for the advance to be made early; but that is for the parties to agree. If the have not, it will be difficult to infer agreement to something that is contrary to other terms and conditions.



I hope that this assists you.

Kind regards,
John Dowse

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John Dowse

Expertise

Legal; contract interpretation; quantum; delay analysis. Practitioner in arbitration, adjudication and mediation.

Experience

Thirty-three (33) years experience in building and construction, at all levels both within contracting and consulting organisations. Practising arbitrator, adjudicator, and mediator. Faculty approved trainer for the Chartered Institute of Arbitrators. Lecturer on construction contract forms and dispute resolution practices.

Organizations
Chartered Institution of Civil Engineering Surveyors Chartered Institute of Arbitrators Institute of Directors Society of Construction Arbitrators

Publications
Various UK and International construction and legal publications.

Education/Credentials
LLB (Hons), Pg Dip (Legal Practice), MCInstCES MCIArb MIOD Barrister

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