Condition Precedent is next on our A-Z of Construction Contractual Terms.
In a construction contract, a condition precedent is a term which sets out events that need to happen in order for a part of the agreement to come into force. For example, payment in a construction contract may only happen if the following conditions are satisfied:
(a) The Contractor has carried out the Works in accordance with the Contract;
(b) The Contractor provides a Payment Application on or by a certain day;
(c) The Application for Payment includes:
· The sum applied for;
· The basis of calculation for the sum applied for; and
· The period of time to which the Payment Application relates.
Check out letters A & B here.
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