Back to Basics #38 - JCT D&B 2016 – Helpful Timeline Diagrams

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:

DB_2016_Final_Statement_and_Final_Payment_.jpg

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.

  • Sheffield (Head Office)

    The Annexe
    260 Ecclesall Road South
    Ecclesall
    Sheffield
    S11 9PS
    
    Tel – 0114 230 1329
    
    
  • London

    Adam House
    7-10 Adam Street
    London
    WC2N 6AA
    
    Tel – 020 7520 9295
    
    
  • Liverpool

    Horton House
    Exchange Flags
    Liverpool
    L2 3PF
    
    Tel- 0114 230 1329
    
  • Manchester

    3 Hardman Street
    Manchester
    M3 3HF
    
    Tel – 0114 230 1329
    
    
  • Birmingham

    Birmingham Business Park
    4200 Waterside Centre
    Solihull Parkway
    Birmingham
    B37 7YN
    
    Tel – 0121 481 2381