Onerous clauses being imposed in the construction sector

5th February 2019.

Onerous clauses are being imposed in the construction sector on contractors.

The Construction Enquirer wrote on the 4th February about onerous clauses being imposed on contractors

Click on the above link to see the article in the Construction Enquirer.

Specialists in the industry are seeing a sharp rise in these clauses being added to construction contracts.

Some of these clauses could leave the contractors agreeing to unlimited liability or terms not covered by their insurers.

The article highlights a number of example clauses to watch out for.

As a Credit Management company we would also warn our clients/members to watch out for clauses that impose payment terms in excess of late payment legislation or clauses that seek to eliminate any potential interest or compensation that they could be due under late payment legislation.

If your suppliers try to impose onerous payment terms or payment terms that go beyond the legislation (standard contracts should not exceed 60 days) then you are not obligated to accept them. Payment on time is your right.

Give us a call to find out how we can help.

James Salmon, Operations Director, 5th February 2019

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