Interim payment meaning

This Checklist highlights the principal points to address when arranging payment or seeking the recovery of retention monies. It proceeds on the assumption that the contract falls within the HGCRA 1996 and focuses mainly on employer–contractor retention monies, though the same considerations extend to contractor–sub‑contractor retention monies as well. Refer to Practice Note: Retention of payment in construction contracts for a fuller explanation of retention, when it is usually paid, and the way retention is dealt with under JCT and NEC contracts, including typical timing and treatment. What does the building contract say? At the outset, scrutinise the contract’s retention provisions and clauses surrounding retention in detail. The usual pattern is a two‑stage release: the first 50% falls due on practical completion of the works, with the balance payable after any notified defects during the defects period have been remedied. This split release mechanism is the most common arrangement. Building contracts often state expressly that retention is to be held on trust; even if not expressed, case law...

Procedural Guide This Procedural Guide explains the process for making an application under the Civil Procedure Rules 1998 (CPR), in line with CPR 72 and CPR PD 72, together with the Family Procedure Rules 2010 (FPR 2010), SI 2010/2955, to enforce a liability owed to the debtor by a third party within the jurisdiction (formerly described as a garnishee order). It also provides direction on interim third party debt orders, duties of third parties, hardship payment orders, the evidence required and the range of orders the court may make and grant where appropriate. A third party debt order is an enforcement route enabling a creditor to recover sums, for example arrears of maintenance or a lump sum, from money payable and owed to the debtor by a third party within the jurisdiction. This encompasses funds held in the debtor’s name with a bank or building society. Whether a third party debt order is granted lies within the court’s discretion and will depend upon the circumstances prevailing at the time...

This Checklist is intended for situations where: a leasehold property is being purchased and the tenant (or a predecessor in title) entered into an agreement for lease prior to completion of the lease; or a reversionary interest is being bought and the reversioner (or a predecessor in title) entered into an agreement for lease before completion of an existing occupational lease, or an agreement for lease remains in place pending completion of a lease. In each case, the agreement for lease predates completion of the relevant lease. You should confirm whether any outstanding or continuing obligations in the agreement for lease (eg to rectify defects or undertake works) will bind the purchaser. Any surviving obligations that bind successors in title could adversely affect the property’s investment value. Note that this Checklist is not comprehensive and, depending on the nature of the transaction, other issues may arise from the agreement for lease and require consideration. This Checklist also does not address limitation periods...

Interim payment process in the NEC4 Engineering and Construction contract—flowchart HGCRA 1996 applies — option Y(UK)2 selected...

This Flowchart It outlines the competent authorities tasked with implementing UN and UK sanctions pursuant to the Sanctions and Anti-Money Laundering Act 2018 (SAMLA 2018) within the United Kingdom jurisdiction...

In this issue: Key DR developments Claims and remedies Costs and funding Cross-border disputes Injunctions Civil appeals New content Dates for your diary Useful information Daily and weekly news alerts Key DR developments CPR updates 174th Practice Direction update effective 5 November 2024: The Master of the Rolls and the Parliamentary Under-Secretary of State for Justice have authorised the 174th Practice Direction (PD) update to the Civil Procedure Rules (CPR). The changes take effect at 11am on 5 November 2024. This PD update amends CPR PD 51ZE (Small Claims Track Automatic Referral to Mediation Pilot Scheme) and CPR PD 51R (Online Civil Money Claims (OCMC) Pilot Scheme), expanding the obligation to engage in integrated mediation in civil matters to money claims submitted via the OCMC service. For more information, see: LNB News 22/10/2024 127—174th Practice Direction update—in force 5 November 2024. Court guidance Damages Claims Pilot under CPR PD 51ZB—updated guidance:...

Bellway Homes Limited v Surgo Construction Limited [2024] EWHC 10 (TCC) What are the practical implications of this case? In adjudications governed by the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), a party is permitted to place only one dispute before the adjudicator (HGCRA 1996, s 108(1)). Where more than one dispute is advanced, the adjudicator has no jurisdiction to proceed (Fastrack v Morrison). This decision is the first to address whether a payee’s interim payment claim that proceeds on two alternative footings—(i) the true valuation of the works and/or (ii) entitlement to the sum applied for because no valid payment or pay less notice was served (often termed a ‘smash and grab’ claim)—should be treated as a single dispute. The court concluded that it is one dispute, with the consequence that an adjudicator has jurisdiction to consider both bases within the same reference. The outcome will be of real importance to parties engaged in interim payment contests, as it confirms that valuation and notice-default arguments...

1st Formations Ltd v Lapp Industries Ltd [2025] EWHC 1526 (TCC) What are the practical implications of this case? This decision underscores that the courts will adopt a common-sense, pragmatic approach to the content of a payee’s notice under the HGCRA 1996 and Part II of the Scheme for Construction Contracts (the Scheme), resisting unduly narrow readings. So long as the notice makes sufficiently clear what sum is sought and the footing for the claim, the court will not seek to interfere or hunt for defects that might render the notice void or ineffectual. Here, the payee’s documents were plainly recognisable as an interim application; they identified the amount asserted as due and the basis upon which that figure had been worked out. The TCC further confirmed that a payment notice is not invalid merely because it asks for a figure below the amount stated as due. If a payment notice includes an incorrect due date, that is an issue for the other party to pick up in...

FORTHCOMING CHANGE 1 : Section 10 of the Finance Act 2022 will raise the normal minimum pension age (NMPA) from 55 to 57 on 6 April 2028, except for members of the firefighters, police and armed forces public service pension schemes. This increase applies broadly across registered schemes, subject to the stated exemptions. The same Act will also permit members of registered pension schemes to access benefits before 57 where, on or before 4 November 2021, they either held an ‘unqualified right’ to draw benefits, or were already engaged in a substantive transfer to a scheme providing an unqualified right to a protected pension age below 57 on or before 4 November 2021. To rely on this new protection applying in 2028, the scheme’s rules must, as at 11 February 2021, have contained an unqualified right to take entitlement to scheme benefits before age 57. For more detail, see Practice Note: Increasing the normal minimum pension age (NMPA) to 57—pensions impact. FORTHCOMING CHANGE 2 : The Pension...

This Practice Note outlines the required contents of a Part 36 offer, identifies to whom the offer must be directed, and highlights the additional stipulations for a defendant’s Part 36 proposal. It also explains how to make a Part 36 offer confined to part of the claim or focused on a specific issue within the claim. The Note addresses offers in proceedings with multiple parties, the need for a relevant period of at least 21 days, and the treatment of interest. It further considers situations involving a litigant in person, as well as the inclusion of a non-monetary element within a Part 36 offer... What a Part 36 offer must include A compliant Part 36 offer does not have to be presented in a letter; a party may instead use Form N242A (CPR PD 36, para 1.1)...

European Commission investigations The European Commission (Commission) examines indications or allegations of anti-competitive behaviour by companies that affect more than one EU Member State—for instance, international price-fixing cartels and other collusive practices prohibited by Article 101(1) TFEU, or situations where a company seems to misuse a dominant position contrary to Article 102 TFEU. Note—criminal action against individuals can be pursued in some Member States, but not by the Commission... Investigations may begin in one of four ways: an implicated party coming forward as a whistleblower, a complaint submitted by a third party, the Commission obtaining market intelligence suggesting a breach of competition law—for example, press reports or informal customer complaints, or the Commission identifying suspected infringements during a sector inquiry (see EU Sector inquiries). Frequently, a company only becomes aware that it is under investigation after the Commission has conducted an unannounced inspection (a ‘dawn raid’) or has sent information requests... Once opened, an investigation follows an established...

Company registration number: [ insert company number ] [ insert company name ] [ LIMITED OR LTD ] Minutes for a meeting of the board of directors (the Meeting) of [ insert company name ] [ Limited OR Ltd ] (the Company) Held at [ insert place of meeting ] Held on [ insert day, month and year of meeting ] at [ insert time of meeting ] [ am OR pm ] Present: [ Insert names of directors attending, in person or by any remote method (unless such methods are expressly excluded by the company’s articles of association) ] [ by [ insert means of attendance for each director joining remotely ] ] [ In attendance: ] [ [ Insert name of any person present, in person or by any remote means, who does not count towards the quorum for the meeting (eg the company secretary, any legal advisers) ] ] [...

Insert in para 6.1 of response form ET3: It is [ accepted OR not accepted OR denied ] that the Claimant was employed by the Respondent [ at its [ insert details, eg London office ] ] as [ insert job title, eg an electrician ] from [ insert date ] until [ his OR her OR their ] dismissal on [ insert date ]. It is [ accepted OR denied ] that the Respondent is [ insert brief description of the nature of the Respondent, eg a nationwide property maintenance service ]. For the reasons set out below, the Respondent denies that the Claimant was unfairly [ and/or wrongfully ] dismissed, as alleged or at all. [ It is further denied that the Respondent [ insert details of any other claims, eg automatically unfairly dismissed the Claimant under section 152 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992), automatically unfairly selected the Claimant for redundancy under section 153 of TULR(C)A 1992,...

In the estate of the late [ enter name of deceased ] [ enter name of firm ] [ enter firm’s address ] I, [ enter name of beneficiary ], of [ enter address ], acknowledge receipt of £[ enter amount ] from [ enter name of firm ], being an interim payment made under the [ Will of OR intestacy of ] the above‑named deceased. Signed.......................................................... [ enter name beneficiary ] Dated............................................................. ...

If the local authority obtains an Interim Management Order (IMO), the authority: is entitled to take possession of the property, as necessary, (subject to the rights of current occupiers) may carry out, where appropriate, and authorise a manager or another person to carry out, in connection with the property anything that a person with an estate or interest would, but for the order, be entitled to do Comparable powers also apply equally where a Final Management Order (FMO) has been made (see section 116(3) of the Housing Act 2004 (HA 2004))...

If an employee dismissed by reason of redundancy is invited to return to their former post, or to take up another position (with the same employer or an associated employer), and they resume work within four weeks of the previous employment ending, they are treated as not dismissed and have no entitlement to a redundancy payment (section 138(1) of the Employment Rights Act 1996 (ERA 1996)). For more detail, see Practice Note: Renewal of contract, re-engagement and trial periods. On whether an employee’s continuity of employment is preserved during the interval between the old role ending and the new role commencing in those circumstances, see, generally, the following Practice Notes: Continuity of employment How to determine continuity of employment Working out an employee’s period of continuous employment with an employer is relevant to qualifying for certain statutory rights under the Employment Rights Act 1996 (ERA 1996). There is a prescribed approach to calculating continuity that overrides any agreement between employer and...

Retention Retention describes the portion of interim payments the employer withholds as security for the contractor’s future performance of its duties and to encourage the contractor to discharge those duties in full and properly. For further details, consult the Practice Note: Retention of payment in construction contracts. When retention is to be released to the contractor depends on the particular contract terms for the project. Typically, half of the retained sum is paid out at practical completion, with the balance thereafter following completion of any remedial works for defects reported within the defects liability period. Consequently, if these milestones are reached before the final certificate is issued, the contractor may have a right to seek payment of some or all of the retention...