Construction Payment Guidance • JCT Subcontract Risk Screening

Subcontract Risk Scanner & Statutory Playbooks

Identify potentially onerous bespoke amendments before signing. Automated screening flags payment, notice, delay and other commercial terms for closer review. Findings depend on the contract wording and are not a legal opinion or a determination that a clause is unlawful.

Review Draft Subcontract Free → 1 Free Scan Included • Automated Contract Screening • Not a Legal Opinion
[✓] Section 110 & 111 Notice Terms
[✓] Retention Release Provisions
[✓] Condition Precedent Review

Statutory Construction Law Playbooks

Practical commercial guidance for UK trade subcontractors operating under standard and amended JCT agreements.

Statutory Terms • Section 113

Section 113 Conditional Payment Terms in JCT Subcontracts →

Section 113 can make certain terms that condition payment on receipt of payment from another party ineffective. The Act includes an insolvency exception, which depends on whether the relevant third party, or another person in the payment chain specified by the provision, is insolvent. Whether it applies depends on the clause and circumstances.

Commercial Risk: Potential cashflow delay on completed works.
Payment Notices • Section 111 & Relevant Contract Provision

Payment Notice Deadlines & Section 111 Principles →

Check the notice deadline, service method, sum stated and basis of calculation against the payment terms. A notice issue may affect the sum treated as due, but the outcome depends on the notices, contract and facts.

Commercial Risk: Disputed deductions and valuation challenges.
Statutory Suspension • Section 112

Suspending Site Operations for Subcontractor Non-Payment →

Section 112 may permit suspension for non-payment if its conditions are met and at least seven days’ notice stating the grounds is given. Check the payment position and subcontract before suspending. Any cost or time consequences depend on the law, contract and circumstances.

Commercial Risk: Exposure to breach claims if notice conditions are not satisfied.
Retention Terms • Relevant Contract Provision

Subcontract Retention Provisions and Release Schedules →

Review the release milestones, payment terms and any deductions against the signed subcontract. Check whether retention release is tied to the subcontract works or downstream project events.

Commercial Risk: Delayed retention release past the defects liability period.
Design & Build • Subcontract Terms

Design and Build Subcontract Payment and Design Terms →

Navigate bespoke schedules of interim valuation dates and deliverables. Where design responsibilities apply, this wording may create wider liability and may not be covered by every policy. Check the exact contract wording and insurance policy.

Commercial Risk: Disputed design stages and potential professional liability gaps.
Notice Requirements • Relevant Contract Provision

Delay Notice Provisions & Extension of Time Terms →

Identify condition precedent clauses that require delay notifications within strict timeframes. Review the precise notice procedure and contract wording to ensure extension of time rights are properly preserved.

Commercial Risk: Potential exposure to delay damages if notices are missed.
Live Site Tool

Instructed verbally on site today?

Use the CVI tool to record a verbal site direction and request written confirmation. Its contractual effect depends on the signed subcontract, the authority of the person giving the direction and the applicable notice procedure.

Record Verbal Direction →
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