Paragraph 72 PaymentsI1
England and Wales
The undertaker must pay to National Highways a sum equal to the whole of any reasonable costs and expenses which National Highways reasonably incurs (including costs and expenses for using internal or external staff) in relation to the cable works and SRN works and in relation to any approvals sought under this Order, or otherwise incurred under this Part of this Schedule, including—
the checking and approval of the information required under paragraphs 70(1) and (2);
the supervision of the cable works and SRN works;
the checking and approval of the information required to determine approvals under this Order;
costs in relation to the transfer of any land required for the SRN works and cable works;
all legal and administrative costs and disbursements reasonably incurred by National Highways in connection with sub-paragraphs (a)-(d) of this sub-paragraph; and
any value added tax which is payable by National Highways only in respect of such costs and expenses arising under this paragraph and for which it cannot obtain reinstatement from HM Revenue and Customs,
together comprising “the NH costs”.
National Highways must provide the undertaker with a schedule showing its estimate of the NH costs prior to the commencement of the cable works and SRN works. Where the undertaker accepts that the estimate of costs is reasonable, the undertaker must pay to National Highways the estimate of the NH costs prior to commencing the SRN works or cable works. Where the undertaker does not accept that the estimate of costs is reasonable, escalation under sub-paragraph (6) will apply.
If at any time after the payment referred to in this sub-paragraph (3) has become payable, National Highways reasonably believes that the NH costs will exceed the estimated NH costs, it may give notice to the undertaker of the amount that it believes the NH costs will exceed the estimate of the NH costs (the excess). Where the undertaker accepts that the estimate of the excess is reasonable, the undertaker must pay to National Highways within 30 days of the date of receipt of a properly issued VAT invoice from National Highways addressed to the undertaker for the excess sum, a sum equal to the excess. Where the undertaker does not accept that the estimate of the excess is reasonable, escalation under sub-paragraph (6) will apply.
National Highways must give the undertaker a final account of the NH costs referred to in sub-paragraph (1) above within 30 days of the issue of the provisional certificate issued pursuant to paragraphs 73(4) or 74 (3).
Within 30 days of the issue of the final account—
if the final account shows a further sum as due to National Highways the undertaker must pay to National Highways the sum shown due to it;
if the account shows that the payment or payments previously made by the undertaker have exceeded the costs incurred by National Highways, National Highways must refund the difference to the undertaker.
Where the undertaker does not agree that an estimate provided by National Highways under this paragraph is reasonable, the undertaker must notify National Highways of that within 15 days of receiving the estimate. The undertaker and National Highways will escalate the estimate internally and will each nominate a senior officer to attend a discussion on the estimate. Where the parties fail to reach agreement following such discussion, any difference or dispute over reasonableness of any excess sum shall be determined by expert determination in accordance with paragraph 85.
Annotations
Commencement
- I1
Sch. 9 para. 72 in force at 8.1.2026, see art. 1