Lapp: what the evidence showed when the claim was made

No payment terms were agreed between A and B. The payment provisions of Part II of the Scheme for Construction Contracts (England and Wales) Regulations 1998 (as amended) apply as implied terms, with sections 110A-111 of the Housing Grants, Construction and Regeneration Act 1996 (as amended): Scheme Part II para 2(1): The amount of any payment by way of instalments or stage or periodic payments in respect of a relevant period shall be the difference between the amount determined in accordance with sub-paragraph (2) and the amount determined in accordance with sub-paragraph (3). Para 2(2): an amount equal to the value of any work performed in accordance with the relevant construction contract during the period from the commencement of the contract to the end of the relevant period (...) Para 2(3): the aggregate of any sums which have been paid or are due for payment by way of instalments, stage or periodic payments (...) Para 4: Any payment of a kind mentioned in paragraph 2 above shall become due on whichever of the following dates occurs later—(a) the expiry of 7 days following the relevant period mentioned in paragraph 2(1) above, or (b) the making of a claim by the payee. Para 8(2): The final date for the making of any payment of a kind mentioned in paragraphs 2, 5, 6 or 7, shall be 17 days from the date that payment becomes due. Para 9(2): The payer must, not later than five days after the payment due date, give a notice to the payee complying with sub-paragraph (3). (3) A notice complies with this sub-paragraph if it specifies the sum that the payer considers to be due or to have been due at the payment due date and the basis on which that sum is calculated. Para 10: (...) that notice [of intention to pay less than the notified sum] must be given not later than seven days before the final date for payment (...). Para 12: 'claim by the payee' means a written notice given by the party carrying out work under a construction contract to the other party specifying the amount of any payment or payments which he considers to be due and the basis on which it is, or they are calculated. 'relevant period' means a period which is specified in, or is calculated by reference to the construction contract or where no such period is so specified or is so calculable, a period of 28 days. Act section 111(1): Subject as follows, where a payment is provided for by a construction contract, the payer must pay the notified sum (to the extent not already paid) on or before the final date for payment. Act section 110B(2)-(4) (in summary as enacted): where the payer gives no payment notice, the payee's notice complying with section 110A(3) — a notice specifying the sum the payee considers due and the basis on which it is calculated — stands as the notice fixing the notified sum.

1. On 14 April 2023 A's director emailed B, attaching an application for an interim payment for work carried out at the site. The email said the amount was based on the director's "provisional valuation" of the work carried out. 2. One attachment was an invoice for an interim payment for works completed at the site: £100,000.00, plus VAT of £20,000.00, total to pay £120,000.00. It stated that payment was due within 14 days of the invoice date. 3. The other attachment was a document headed "Application for interim payment". It gave the value of work carried out, per an attached valuation, as £588,590.60, excluding electrical and data works not yet finalised. It deducted payments previously received of £303,712.00 and gave the total payment now due as £341,854.32. It then requested a payment on account of £100,000.00 excluding VAT, plus VAT of £20,000.00: a total interim payment requested of £120,000.00. It stated that payment was due within 14 days of the application. 4. B did not give A any payment notice or pay less notice in response to the application.