Prompt Payment of Accounts Act, 1997
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Prompt payment to subcontractors. |
9.—Where there is a contract (“the first contract”) between a purchaser and a supplier for the supply of goods or services and the supplier is also a purchaser under a contract (“the second contract”) for the acquisition or supply of the goods or services to be provided under the first contract— | |
(a) where the first contract is in writing and provides for a date by which the payment of the agreed price for the supply of the goods or services shall be made, the period used in calculating the prescribed payment date for the second contract shall be the same number of days as the period between the supply of the goods or services and the payment for the goods or services provided for in the first contract or, if the second contract is in writing, any lesser period specified in the second contract, or | ||
(b) where the first contract is not in writing or is in writing but does not provide for the date of payment, the prescribed payment date for the second contract shall be 45 days— | ||
(i) after receipt by the purchaser of an invoice for the payment due, where the invoice is received after the completed delivery of the goods or services, or | ||
(ii) after the delivery of the goods or services, where the delivery is made at the time of or after receipt by the purchaser of an invoice therefor, | ||
or the least of such lesser number of days— | ||
(iii) as may be specified in the second contract (if the second contract is in writing), or | ||
(iv) as the Minister may, by order under section 10 (2), prescribe. |