ABSTRACT
Specialists contractors are normally contracted by the main contractor and are sometimes subject to practices which TI see as unfair, such as delayed payment structures, Dutch auctioning and monies withheld on retention for long periods. Paying when paid is outlawed under the Construction Housing and Regeneration Act, however contractors exploit a loophole in the law which allows contractors not to pay the supplier if the major contractor’s customer defaults on payment because of certain exceptional reasons. Liquidated damages are often charged back-to-back in contract conditions and blame can be passed down the chain disproportionately. Subcontractors need to retain their business relationships and decide on their strategy.
