Clause Centre

Final Date for Payment

27 June 2026
Clause Text
The Fee shall (subject to [the Employer's] rights of set-off and deduction) be payable in the instalments stated in Schedule 1 (the 'specified dates'). The application date for payment of each instalment shall be the specified date in Schedule 1 and the Consultant shall submit an invoice on or before the relevant application date. The due date for payment of each instalment shall be the specified date in Schedule 1. The Consultant's invoice shall state the amount the Consultant considers due to him as at the due date and the basis on which such amount has been calculated (the 'Notified Sum') and shall be accompanied by such documents, receipts and vouchers as may reasonably be required by [the Employer]. The final date for payment shall be 30 days after the relevant due date save that if the Consultant invoice is issued late, the final date for payment shall be postponed by the same number of days by which the Consultant's invoice is late.
Why is this clause problematic?
The clause did not appear to provide an identified and/or fixed period between the due date and the final date for payment contrary to s.110(1)(b) of the Housing Grants, Construction and Regeneration Act 1996.
What were the cost consequences?
Since the clause did not comply with s.110(1)(b) of the Housing Grants, Construction and Regeneration Act 1996 the relevant payment provisions contained within paragraph 8(2) of Part 2 of the Scheme for Construction Contract applied with the result that the final date for payment was 17 days after the due date and the Defendant’s pay less notices were out of time as a result. See: Deerns UK Ltd v VDC LHR11 Ltd [2026] EWHC 1509 (TCC) (23 June 2026) https://www.bailii.org/ew/cases/EWHC/TCC/2026/1509.html and https://www.dda.law/legal-updates/view/deerns-uk-ltd-v-vdc-lhr11-ltd-2026-ewhc-1509-tcc-when-a-30-day-final-payment-period-became-17-days-under-the-scheme.
Amendment to Standard Form
Not relevant
Associated Clauses
Not relevant
Relevant Case Reference
Deerns UK Ltd v VDC LHR11 Ltd [2026] EWHC 1509 (TCC) (23 June 2026) https://www.bailii.org/ew/cases/EWHC/TCC/2026/1509.html
Contract Type
Professional Appointment
Jurisdiction / Region
Clause Function Category
Payment
Risk Type
Ambiguity / Poor Drafting
Unclear or Disputed Trigger Event
Non-Payment / Late Payment
Undefined / Poorly Defined Terms
Potentially Unenforceable Clause
Known outcomes?
Led to dispute
Litigated
Clause BEE Score
Bias 4
Exposure 5
Enforceability 1

Community Contributions

Bias
0
Exposure
0
Enforceability
0

Community Clause BEE Score

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Reminder - The Three Dimensions

1. Bias (B-Score)

How is risk structurally allocated?

  1. Extreme Imbalance
  2. Significantly Unfair
  3. Moderately One-Sided
  4. Slightly Skewed
  5. Balanced

Higher numbers indicate increasing allocation of risk to one party.

2. Exposure (E-Score)

What happens if the clause operates?

  1. Severe / Litigation Likely
  2. High-Risk Outcome
  3. Material Exposure
  4. Manageable Impact
  5. Low Consequence

Higher numbers indicate greater real-world cost, delay, or dispute risk.

3. Enforceability (Enf.)

Is the clause likely to be upheld and applied as written?

  1. Highly likely to be enforced
  2. Generally enforceable
  3. Contestable / uncertain
  4. Legally vulnerable
  5. Unlikely to be enforced

Higher numbers indicate greater likelihood of legal effect.

Bias
0
Exposure
0
Enforceability
0

Community Clause BEE Score

Important Note This platform exists to foster open knowledge-sharing and meaningful learning. Our aim is to create a safe, constructive space where experiences and insights can be exchanged for the benefit of everyone. We approach discussions with curiosity and respect, focusing on collective growth rather than criticism. This is not a forum for blame or finger-pointing - every contribution is valued as part of a shared journey to deepen understanding and support informed decision-making.