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The only time that we believe a Contractor may need money paid promptly is where the Contractor is responsible for obtaining the necessary consents to undertake the building project and for meeting the costs associated with that.
In this instance, we appreciate that the costs will be payable immediately by the Contractor and BUILDSAFE® through its fair payment regime provides for immediate payment by an Owner for such costs and charges – if an Owner does not, or cannot pay, the contractor is protected from loss by the Security Amount held in trust by BUILDSAFE®. The truth is that it would be rare for an Owner to default so early in the Contract and if they did the Contractor would be best warned to stay well away. Most Owners are keen to proceed and want to do everything they can to facilitate and speed up that process to get the building work underway and that leaves the real risk and problems to occur further down the line. |
