Five Ways Contractors Hide Illegal Payment Clauses

About this episode

Jacob Austin discusses five ways main contractors disguise illegal payment clauses in subcontract amendments and how subcontractors can protect themselves.

Episode 140 of The Subcontractors Blueprint sees Jacob Austin expose five ways main contractors are disguising illegal payment clauses in bespoke subcontract amendments — nearly 30 years after pay when paid was banned under the Housing Grants, Construction and Regeneration Act 1996. Jacob maps the specific clause patterns to watch for, explains why the 2009 amendment to the Construction Act extended that prohibition to pay when certified arrangements, and shows how the Scheme for Construction Contracts protects subcontractors when unlawful provisions have already been signed. The core message: these clauses survive only because subcontractors don't read their contracts and don't challenge them. KEY TAKEAWAYS Why retention release clauses tied to main contract practical completion are void — and how to challenge them. How contractors dress up "back to back" variation arrangements to avoid paying you for changes they won't recover themselves. Why a floating payment due date linked to the main contract valuation cycle fails the Construction Act. The one conditional payment clause that is still lawful — and why tight commercial management is your only real protection when it applies…

People in this episode

Host: Jacob Austin

Topics covered

• contract management
• illegal payment clauses
• subcontractor rights
• construction law
• contract compliance

Keywords

• contract clauses
• subcontractors
• payment terms
• construction industry
• legal compliance

Mentioned in this episode

Organizations: Housing Grants, Construction and Regeneration Act 1996, Construction Act, Scheme for Construction Contracts

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