Feargal Quinn (Independent)

I move amendment No. 4:

In page 6, before section 7, to insert the following new section:

7.—(1) This section applies where, not later than 5 days after the payment claim date, an executing party to a construction contract delivers a payment claim notice relating to a payment claim to the other party or another person specified under the construction contract.

(2) A payment claim notice is a notice specifying—

(a) the amount claimed (even if the amount is zero),

(b) the period, stage of work or activity to which the payment claim relates,

(c) the subject matter of the payment claim, and

(d) the basis of the calculation of the amount claimed.

(3) If the other party or specified person referred to in subsection (1) contests that the amount is due and payable, then the other party or specified person—

(a) shall deliver a response to the payment claim notice to the executing party, not later than 21 days after the payment claim date, specifying—

(i) the amount proposed to be paid,

(ii) the reason or reasons for the difference between the amount in the payment claim notice and the amount referred to in subparagraph (i), and

(iii) the basis on which the amount referred to in subparagraph (i) is calculated,

and

(b) if the matter has not been settled by the day on which the amount is due, shall pay the amount referred to in paragraph (a) to the executing party not later than on that day.

(4) Where a reason for the different amount in the response is attributable to a claim for loss or damage arising from an alleged breach of any contractual or other obligation of the executing party (under the construction contract or otherwise), or any other claim that the other person alleges against the executing party, the response shall also specify—

(a) when the loss was incurred or the damage occurred, or how the other claim arose,

(b) the particulars of the loss, damage or claim, and

(c) the portion of the difference that is attributable to each such particular.

(5) The rights and obligations conferred or imposed by this section are additional to any conferred or imposed by the terms of the construction contract.".

This amendment concerns arrangements for a party to claim payments under construction contracts. It sets out detailed procedures for making a payment claim. In the event that the amount involved is disputed between the parties, the amendment works to ensure that each of the parties is clear about the amount in dispute and the basis on which the dispute arises. This provides an important clarification which is not readily available to contracting parties at present. It then forms the basis for seeking a resolution of any payment dispute through moving on to the adjudication process provided under the Bill.