“Managing and securing the cash flow of any business enterprise is of paramount importance, and contracting parties in the construction industry are no exception to this. If regular cashflow from the main contractor to its subcontractors and the supply chain is disrupted, parties to the project may soon find themselves in difficulty. The purpose of a conditional payment clause is to help a main contractor guard against a cash flow ‘crunch’ by making the downstream payment obligation conditional on receipt of payment from the upstream party …” (more)
[Niel Coertse, Thomson Reuters Construction Blog, 19 January]
First posted 2021-01-20 18:59:28
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