Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Main contractor definition

What does Main contractor mean? Main contractor describes the contractor engaged by the employer/client under the primary building contract to deliver the works and manage the supply chain. Also called the head contractor, it assumes overall responsibility for completion, programme, quality and co-ordination, and sub-contracts work packages. The term is descriptive rather than defined in statute. Standard forms (JCT, NEC) usually say “Contractor”, but in practice the party contracting directly with the employer is called the main contractor. Key features: overall contractual liability to the employer even where work is sub-contracted; control of site operations and logistics; payment to subcontractors; procurement of insurances...

Construction payment law and policy: 30-day terms, reporting regimes, and remedies (Procurement Act 2023, Reporting Regulations 2017–2025, Late Payment of Commercial Debts (Interest) Act 1998, HGCRA 1996)

Published by a LexisNexis Construction expert

Practice notes

Historic Government initiatives

Lengthy contractual payment terms and late payment have long been recognised as a persistent issue within the construction sector. When a customer (for example, a Main contractor) fails to pay a supplier (for example, a sub‑contractor) promptly, the consequences for the supplier can be severe—disrupted Cash flow may force the supplier to incur borrowing Costs to bridge the period of non‑payment, access to affordable finance may become more difficult generally, the supplier may face disputes within its own supply chain if it cannot pay on time, and, in the worst case, insolvency may follow.

To tackle these difficulties in the public sector, the Office of Government Commerce (OGC), as it was then known, issued its ‘Guide to best “Fair Payment” practices—construction procurement’ in 2007. The guidance set out recommended fair payment principles and practices and applied to public sector works contracts from 1 January 2008. It also introduced a ‘Model Fair Payment Charter’, which the OGC encouraged the client and principal supply chain participants engaged on a project, or a project framework, to agree and sign...

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Web page updated on 21/05/2026

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