ABSTRACT
The Conditions of Contract will include a set of agreed ‘terms of payment’ that detail how the contract price will be paid to the contractor. Purchasers
“Paying interest on the money” is valid even if the contractor has enough cash in the bank to be able to fund the work without borrowing. If the cash is not needed to fund the contract the contractor could have put it out on loan, to a Local Authority or Building Society for example, to earn interest. Either way interest is lost.
