Shedding new light on late payment

Tony bingham 2017 bw web

Provident vs Hexagon changes the game on late payment – do it twice, and the aggrieved contractor can walk

This Provident Building Services Ltd vs Hexagon Housing Association Ltd case is one hell of a palaver. It’s all about one thing… employer Hexagon didn’t pay the builder on time. In 32 interim accounts, 19 of them were paid late – paid yes, but on time, no. In the end the builder packed his whole kit and caboodle and quick marched away forever. This wasn’t a mere pause or work suspension; it was divorce.

Forgive me if I reminisce at this point. I recall falling out big time with my boss when I was a mere lad. I announced that all we had to do, as the employer, was pay the amount due to the contractor on time. “Never… never…” – my boss sounded here like Ian Paisley at the top of his voice – “NEVER”. Paying up was a yes. Paying on time was a “never”. But, said little me, that’s what the contract says: just pay on time. My boss and I never did see eye to eye on that simple burden on the employer.

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