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CIPAA guide

Why use CIPAA?

Court and arbitration remain available. CIPAA provides a shorter timetable for a payment dispute, and it avoids conditional payment provisions.

The timetable is fixed by the Act and is counted in working days. A payment dispute may therefore be determined while the project is continuing.

Conditional payment provisions are void. That includes clauses in the form “pay when paid” or “pay if paid”, and a back-to-back clause that makes the subcontractor’s payment conditional on payment being received under the main contract. A party cannot rely on the fact that it has not itself been paid, where the Act applies.

The decision is to be complied with. Enforcement is a separate application in the High Court. Where the sum has not been paid, the instruction starts with a CIPAA payment claim.

These notes describe the legislation and the scope of our usual instructions. They are not advice on a particular contract. A consultation may be arranged here.

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