Changes to the Payment Practices provisions

We are changing the interim payment provisions in the Large Package Agreements, our other Contracts will also follow suit. Prompt Payment Government Guidelines and Best Practice dictates that when sending out our latest version we should specifically draw the recipients attention to these changes.

These changes will be brought in on all new Large Package Agreements and will be advised further through pre-order meetings. Should Contractors have any questions to these changes, please contact your Divisional Commercial representative.

From - clause 14.3:

The Contractor shall provide an Interim Application in writing to the Company complying with the requirements of this clause 14.3 and shall do so by the Application Date which shall be as follows:

(a) by the 19^th of each month in respect of interim payments to be made on a monthly basis or if the 19^th of a particular month is not a Business Day then the last Business Day before the 19th; or

(b) by the 6^th and 19^th of each month in respect of interim payments to be made on a bimonthly basis or if the 6^th or 19^th of a particular month is not a Business Day then by the last Business Day before the 6^th or 19^th.

To 14.3:

1.2 The Contractor shall provide an Interim Application in writing to the Company complying with the requirements of this clause 14.3 as follows:

(a) in the case of interim payments to be made on a monthly basis by the 3rd day of each month or if the 3rd day of a particular month is not a Business Day (and there is no Business Day between the 1st and 3rd of the month) then the first Business Day after the 3rd day (such date being an "Application Date") and the Interim Application shall be for the amount due to the Contractor in respect of the Contract Works carried out by the Contractor up to and including the last Business Day of the month preceding the month within which the Interim Application is made; or

(b) in the case of interim payments to be made on a bimonthly basis by:

(i) the 3rd day of each month or if the 3rd day of a particular month is not a Business Day (and there is no Business Day between the 1st and 3rd of the month) then the first Business Day after the 3rd day; and

(ii) 23rd day of a month provided that if the 23rd day is not a Business Day then by the first Business Day after the 23rd of that month

(each such date being an "Application Date")

and:

(iii) the Interim Application to be made pursuant to clause 14.3(b)(i) shall be the amount the Contractor considers will be due in respect of such part of the Contract Works carried out from the 16th day of the preceding month to the last Business Day of the preceding month; and

(iv) the Interim Application to be made pursuant to clause 14.3(b)(ii) shall be the amount the Contractor considers will be due in respect of such part of the Contract Works carried out from the first Business Day of the month of application up to the 15th day of that month.