The perils of payment on modular

By Stuart Thwaites 2019-10-31T06:00:00

Be wary when amending standard form payment provisions for modular construction

Modular construction is on the rise, particularly in the hotel sector. But a recent case highlights the dangers when amending standard form contracts to suit this form of construction, or any project where payment is based on milestones and sign-offs.

The case, Bennett (Construction) Ltd vs CIMC MBS Ltd (formerly Verbus Systems Ltd), concerned construction of a hotel in Woolwich. Bennett was main contractor; Verbus, its subcontractor, was to design, supply and install 78 modular bedroom units to be made in China then shipped to Southampton and fitted out prior to delivery.

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