Civil Engineering Reference
In-Depth Information
by supporting information such as time sheets, which made it possible for the Secretary of
State to calculate the actual amount due and to pay it.
It is a sad fact that many people and organisations make no attempt to pay invoices until
under threat of legal proceedings, and at that point they reveal some error in an invoice
hoping to cause the creditor to have to start again and re-submit another invoice. This case
shows that delaying payment on that ground will not work and that interest on the amount
properly due will still accrue and be payable. The Act's purpose was to encourage prompt
payment. Late payment is the biggest evil in the construction industry. If all parties paid
debts within seven days, cash flow problems would be largely eradicated. It is the unavail-
ability of money to pay debts which causes businesses to fail, even though on paper they
may be in substantial profit. All parties, construction professionals, contractors, sub-con-
tractors and suppliers should not hesitate to get copies of the Act and apply it as soon as
invoices become overdue. A very useful website is
www.payontime.co.uk
.
