10.1 Stage payments and dates for payment under the Act

10.1.1 Requirements for stage payments

10.1 A party to a construction contract subject to the Housing Grants, Construction and Regeneration Act 1996 is entitled to payment by instalments, stage payments or other periodic payments for any work under the contract unless it is specified in the contract that the duration of the work is to be less than 45 days, or it is agreed between the parties that the duration of the work is estimated to be less than 45 days.1 The parties are free to agree the amounts of the payments and the intervals at which, or circumstances in which, they become due.2 In the absence of such agreement, the relevant provisions of the Scheme for Construction Contracts apply.3 Every construction contract should provide an adequate mechanism for determining what payments become due under the contract, and when, and provide for a final date for payment in relation to any sum which becomes due. The parties are free to agree how long the period is to be between the date on which a sum becomes due and the final date for payment.4