Section 109 Entitlement to stage payments.C1I1
England, Wales and Scotland
A party to a construction contract is entitled to payment by instalments, stage payments or other periodic payments for any work under the contract unless—
it is specified in the contract that the duration of the work is to be less than 45 days, or
it is agreed between the parties that the duration of the work is estimated to be less than 45 days.
The parties are free to agree the amounts of the payments and the intervals at which, or circumstances in which, they become due.
In the absence of such agreement, the relevant provisions of the Scheme for Construction Contracts apply.
References in the following sections to a payment F1provided for by the contract include a payment by virtue of this section.
Annotations
Textual amendments
- F1
Words in s. 109(4) substituted (1.10.2011 for E.W., 1.11.2011 for S.) by Local Democracy, Economic Development and Construction Act 2009 (c. 20), ss. 143(1), 148(8), 149 (with s. 149(3)(4)); S.I. 2011/1582, art. 2; S.I. 2011/1597, arts. 2, 3, S.S.I. 2011/291, art. 2
Modifications
- C1
Pt. 2 excluded (E.W.) (5.5.2023) by The Construction Contracts (Exclusion) (Wales) Order 2023 (S.I. 2023/475), arts. 1(3), 3
Commencement
- I1
S. 109 wholly in force; s. 109 not in force at Royal Assent see s. 150; s. 109 in force at 1.5.1998 by (E.W.) S.I. 1998/650, art. 2 and (S.) S.I. 1998/894, art. 2