Construction contract 'pay now, argue later' clause enforced by Court…

A construction payment dispute has ended up in the High Court after a company failed to properly respond to a Payment Claim and failed to pay the claim. The High Court upheld the District Court decision which enforced the ‘Pay now, argue later’ principle in a construction dispute.

The Court held that contractual adherence is essential, especially in the construction industry. A continuous flow of payments is crucial for the timely and efficient completion of projects and enforcing a ‘Pay now, argue later’ regime ensures this.

As a result, the Court dismissed the appellant’s argument and highlighted the binding nature of clauses in commercial contracts. Parties must be fully aware of, and prepared to comply with, the terms to which they agreed.  

Courts are reluctant to stray from the terms agreed in contracts, which is why you need to be sure you are fully aware of the terms and can, and will, fulfil your side of the transaction bargain.

Instructing a legal professional to look over and advise you on the contractual terms before you sign can help you understand what is required, reduce your level of risk, and minimise arguments that can get messy and expensive.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.