BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT 1999 - SECT 12 Effect of "pay when paid" provisions

BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT 1999 - SECT 12

12 Effect of "pay when paid" provisions

(1) A pay when paid provision of a construction contract has no effect in relation to any payment for construction work carried out or undertaken to be carried out (or for related goods and services supplied or undertaken to be supplied) under the contract.

(2) In this section--


"money owing" , in relation to a construction contract, means money owing for construction work carried out or undertaken to be carried out (or for related goods and services supplied or undertaken to be supplied) under the contract.


"pay when paid provision" of a construction contract means a provision of the contract--

(a) that makes the liability of one party (the
"first party" ) to pay money owing to another party (the
"second party" ) contingent on payment to the first party by a further party (the
"third party" ) of the whole or any part of that money, or

(b) that makes the due date for payment of money owing by the first party to the second party dependent on the date on which payment of the whole or any part of that money is made to the first party by the third party, or

(c) that otherwise makes the liability to pay money owing, or the due date for payment of money owing, contingent or dependent on the operation of another contract.