Could the payment provisions of the construction act displace capped payment sums set out in letters of intent?

摘要

There has been much written about (and cautioned against) the use of letters of intent over the years. It is perhaps a testament to the attention letters of intent have been given that the courts have seen very few cases recently where the parties are governed, or said to be governed, by them. It is not my intention to repeat what are perhaps now trite 'warnings over the use of letters of intent in place of entering into formal contractual arrangements - although, there is no harm in repeating it, if just once. There is, however, one aspect in respect of them which has had less practitioner attention than perhaps it ought; the impact of the payment provisions of the amended construction act on the payment arrangements under letters of intent.