s 9 Effect of “pay when paid provisions”
9.—(1) A pay when paid provision of a contract is unenforceable and has no effect in relation to any payment for construction work carried out or undertaken to be carried out, or for goods or services supplied or undertaken to be supplied, under the contract. (2) In this section —“money owing”, in relation to a contract, means money owing for construction work carried out, or for goods or services supplied, under the contract; “pay when paid provision”, in relation to a contract, means a provision of the contract by whatever name called —(a) that makes the liability of one party (called in this definition the first party) to pay money owing to another party (called in this definition the second party) contingent or conditional on payment to the first party by a further party (called in this definition the third party) of the whole or any part of that money; (b) that makes the due date for payment of money owing by the first party to the second party contingent or conditional on the date on which payment of the whole or any part of that money is made to the first party by the third party; (c) that otherwise makes the liability to pay money owing, or the due date for payment of money owing, contingent or conditional on the operation of any other contract or agreement; or (d) that is of such kind as may be prescribed.