During the house of lords debate on the Construction Bill (as it then was) on 26 February 1996, Lord Lucas on behalf of the government said: "This legislation requires that payment should be defined in terms of amount and date." Parliament left it to the industry to get this right by insisting all contracts have an adequate mechanism for payment. Needless to say, the industry did not get this right. Hence the review. The DTI now proposes amending section 110 (1) to provide that a contractual mechanism is adequate only if it requires a statement of what is due in a certificate issued by one of: 1. The payer 2. The payee (via an application for payment) 3. A third party named in the contract.
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