An adequate mechanism for determining what and when payments become due under a contract

In Bennett (Construction) Ltd v CIMC MBS Ltd (formerly Verbus Systems Ltd) [2019] EWCA Civ 1515 the Court of Appeal held that the requirements of s110(1)(a) of the Housing Grants, Construction and Regeneration Act 1996 had been satisfied in that the sign-off process which the parties had agreed provided an adequate mechanism for determining what payments became due under the contract and when. It was held that the purpose of s110 was to ensure that construction contracts contained a transparent and straightforward mechanism for payment to the contractor and that it was not designed to invalidate a particular type of stage payment or instalment regime. Had the Court of Appeal concluded that the mechanism agreed by the parties did not comply with the requirements of s110, the consequence would not have been the wholesale incorporation of Pt II of the Scheme for Construction Contracts but only the incorporation of the provision or provisions of the Scheme necessary to comply with the requirements of the Act.