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Paragraph 40 Late payment notices

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

The contractor may notify (a “late payment notice”) the PCT if the PCT has failed to make any payments due to the contractor in accordance with a term of the contract that has the effect specified in regulation 15 (finance), and the contractor shall specify in the late payment notice the payments that the PCT has failed to make in accordance with that regulation.

(2)

Subject to sub-paragraph (3), the contractor may, at least 28 days after having served a late payment notice, terminate the contract by a further notice if the PCT has still failed to make the payments that were due to the contractor and that were specified in the late payment notice served on the PCT pursuant to sub-paragraph (1).

(3)

If, following receipt of a late payment notice, the PCT refers the matter to the NHS dispute resolution procedure within 28 days of the date upon which it is served with the late payment notice, and it notifies the contractor in writing that it has done so within that period of time, the contractor may not terminate the contract pursuant to sub-paragraph (2) until—

(a)

there has been a determination of the dispute pursuant to paragraph 30 and that determination permits the contractor to terminate the contract; or

(b)

the PCT ceases to pursue the NHS dispute resolution procedure,

whichever is the sooner.