JCT D&B 2016 – Helpful Timeline Diagrams – Back to Basics #38
Final Payment Timelines under JCT
Continuing our Back to Basics Series on payment timelines under different forms of Contract, today’s diagrams are for the Final Payment under the JCT Design & Build (DB) Contract.
The diagram below represents, in a simplified way, the Final Payment Timeline under the JCT Design & Build 2016 Contract:
The final Payment becomes due one month after whichever of the following occurs last:
- The end of the Rectification Period (Clause 4.24.5.1);
- The date stated in the Notice of Completion of Making Good (Clause 4.24.5.2);
- The date of submission to the other Party of the Final Statement/Employer’s Final Statement (Clause 4.24.5.3).
If a Party wishes to rely on the Notice of Completion of Making Good Defects to commence the Payment Timetable, there must be notified defects. Whilst this may sound common sense, this was one of the main forms of debate within the case of CC Construction Ltd v Mincione [2021] EWHC 2502 (TCC).
If an Employer does not specify any defects in accordance with Clause 2.35.1, it will be deemed that there is no requirement to issue a Notice of Completion of Making Good Defects and therefore one of the three ''triggers'' falls away.
Finally, under the JCT Design and Build Contract, should either party dispute anything within the Final Statement/Employer’s Final Statement they should notify the other party before the Due Date for payment and the provisions of Clause 1.8 be followed accordingly.
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