New ruling says late payment may not be grounds for termination

Albertini, Anthony - HiRes

Cash flow is likely to worsen for contractors and subcontractors following a TCC judgment clarifying termination rights relating to late payment

Cash flow has been described as the lifeblood of the construction industry. With profit margins often extremely slender for many contractors and subcontractors, an interruption in cash flow can have serious consequences for their ability to do business and deliver projects to budget and on time. This makes the need for prompt, clearly scheduled payments vital.

However, a recent judgment from the Technology and Construction Court (TCC) has potentially exposed contractors and subcontractors to increased cash flow shortfalls after it clarified the avenues to terminating contracts when employers or contractors fail to pay on time.

Read more…

This is PREMIUM content, available to subscribers only

You are not currently logged in. Subscribers may LOGIN here.

SUBSCRIBE to access this story

Gated access promo

SUBSCRIBE for UNLIMITED access to news and premium content

A subscription will provide access to the latest industry news, expert analysis & comment from industry leaders,  data and research - including our popular annual league tables. You will receive:

  • Print/digital issues delivered to your door/inbox
  • Unlimited access to including our archive
  • Print/digital supplements
  • Newsletters - unlimited access to the stories behind the headlines

Subscribe now 


Get access to premium content subscribe today