BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT 2002 - SECT 12 Due date for payment

BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT 2002 - SECT 12

    (1)     A progress payment under a construction contract becomes due and payable—

        (a)     on the date on which the payment becomes due and payable in accordance with the terms of the contract; or

        (b)     if the contract makes no express provision with respect to the matter, on the date occurring 10 business days after a payment claim is made under Part 3 in relation to the payment.

S. 12(2) inserted by No. 42/2006 s. 13.

    (2)     Interest is payable on the unpaid amount of a progress payment that has become due and payable in accordance with subsection (1) at the greater of the following rates—

        (a)     the rate for the time being fixed under section 2 of the Penalty Interest Rates Act 1983 ; or

        (b)     the rate specified under the construction contract.

S. 12A inserted by No. 42/2006 s. 14.