Chapter 7. Payment

  1. Roger Knowles FRICS, FCIArb, FQSi, Barrister

Published Online: 30 JAN 2008

DOI: 10.1002/9780470759455.ch7

150 Contractual Problems and their Solutions

150 Contractual Problems and their Solutions

How to Cite

Knowles, R. (2005) Payment, in 150 Contractual Problems and their Solutions, Blackwell Publishing Ltd, Oxford, UK. doi: 10.1002/9780470759455.ch7

Publication History

  1. Published Online: 30 JAN 2008
  2. Published Print: 24 MAR 2005

ISBN Information

Print ISBN: 9781405120708

Online ISBN: 9780470759455



  • arguments;
  • arbitration;
  • insurance;
  • dispute;
  • faith


This chapter contains section titled:

  • Where a contract requires the contractor to give a guaranteed maximum price does he have any grounds for increasing the price above the guaranteed maximum?

  • Where a subcontract provides for 2 3 cash discount, does this mean that discount can only be deducted if payment is made on time or may the discount be taken even if payment is made late?

  • Under what circumstances are contractors/subcontractors entitled to be paid for materials stored off site as part of an interim payment or payment on account?

  • Can a contractor force an employer to set aside retention money in a separate bank account?

  • If an employer became insolvent what liability does the contractor have for paying subcontractors who are owed money when no further sums are forthcoming from the employer?

  • Can a contractor/subcontractor legitimately walk off site if payment isn't made when due?

  • Where a contractor undertakes work which he considers should be paid for on a daywork basis and submits daywork sheets as required under the terms of the contract to the architect/engineer, if the daywork records are not signed by the architect or engineer, how does this affect the contractor's entitlement to payment?

  • Can an architect/engineer sign a daywork sheet and then refuse to certify the sums involved for payment? Is a quantity surveyor entitled to reduce the hours included on a signed daywork sheet if he considers them unreasonable or excessive?

  • Where a contractor/subcontractor includes an unrealistically low rate in the bills of quantities, can he be held to the rate if the quantities substantially increase?

  • Can a debtor enforce acceptance of a lesser sum in full and final settlement?

  • How can subcontractors avoid pay when paid clauses?

  • Once the value of a contractor/subcontractor's work has been certified and paid can it be devalued in a later certificate?

  • Can a contractor deduct claims for overpayments levied on one contract from monies due on another in respect of a subcontractor's work?

  • When a contractor completes significantly early may the architect/engineer legitimately delay certification to match the employer's ability to pay from available cashflow?

  • Is an employer entitled to pay a nominated subcontractor direct when the main contractor is insolvent?

  • Where an architect/engineer undercertifies, is the contractor/subcontractor entitled to claim interest?

  • Can an architect/engineer refuse to include an amount of money in a certificate in respect of materials stored on site if the contractor or subcontractor cannot prove he has good title to the materials?

  • Can an employer refuse to honour an architect/engineer's certificate and so delay payment?

  • Where a cheque is issued in respect of construction work undertaken, can it be stopped before it is honoured if it subsequently becomes obvious that the work is defective?

  • Where agreement is reached whereby one party to a construction contract agrees to pay the other a sum of money, can the paying party refuse to make the payment on the grounds that he was financially coerced into the agreement?