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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallPossibly, but repeated late payment does not automatically give you the right to terminate. The answer depends on your contract’s wording, the governing law and the payment history. Check first for an express late-payment or repeated-default clause, any notice and cure procedure, and a general right to terminate for material breach. If none clearly applies, the pattern must be serious enough under the applicable law to justify termination.
Start with your contract and governing law
Review the signed agreement alongside any incorporated terms and amendments. Identify the governing-law clause, then locate the payment, default, suspension and termination provisions. The right to end the contract may come from an express clause or, depending on the law, from a sufficiently serious breach even if the contract does not spell out a late-payment termination right.
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- Payment terms: when each invoice becomes due and whether payment depends on an application, certification or other step.
- Termination triggers: whether the clause covers any late payment, repeated late payments, an uncured default or only a material breach.
- Procedure: required notice wording, delivery method and address, cure period, and any deadline for acting.
- Consequences: what happens to completed work, outstanding invoices, future work, damages and transition costs if the contract ends.
Do not assume that a clause referring to a “repeat” default means one late payment is enough to terminate after any later delay. The trigger may depend on whether an earlier right to terminate had already accrued, and whether it was preserved under the contract.
When can repeated late payment justify termination?
Repeated delays are evidence of a breach pattern, not an automatic legal answer. The UNIDROIT Principles of International Commercial Contracts offer a comparative framework: Article 7.3.1 says termination is generally available when non-performance is fundamental. The Principles do not automatically govern a particular agreement; the contract and applicable law control.
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Under that framework, relevant considerations include how much the delays deprive you of the benefit you expected, whether payment on time was essential, whether the client acted intentionally or recklessly, whether the pattern undermines confidence in future performance, and the consequences of ending the contract. The official text sets out the test in UNIDROIT Principles 2010, Chapter 7, Section 3. Treat it as comparative guidance unless it applies through the contract or governing law.
For a construction business, a recurring cash-flow problem may be commercially serious, but that does not itself prove the legal threshold for termination. Assess the actual delays, amounts, impact on your work and the client’s response under the rules governing your agreement.
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What the UK Supreme Court’s Hexagon decision shows
In Providence Building Services Limited v Hexagon Housing Association Limited (2025), the UK Supreme Court considered a particular construction contract with a 28-day cure period and a repeated specified-default provision. The first late payment was cured within that period. When a later payment was late, the contractor attempted to terminate immediately under the repeat-default wording.
The Court interpreted that clause to require an earlier accrued right to terminate before the repeated-default route could be used for the later payment. The 28-day period was a term of the contract in that case, not a standard cure period for construction contracts. The decision does not establish that repeated late payment always does—or never does—justify termination in the UK. It demonstrates why you should read the trigger, cure provision and any cross-references together. See the UK Supreme Court judgment.
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Give notice carefully and keep a clear chronology
Notice errors or delay can affect whether you can rely on a termination right. Follow the contract’s required notice method, recipient, address, content and timing, and do not assume that an email or informal complaint satisfies the clause.
Article 7.3.2 of the UNIDROIT Principles says termination is exercised by notice and describes a reasonable-time requirement after the aggrieved party knew or should have known of late or non-conforming performance. That is not a universal rule; the contract and governing law determine the requirements that apply to you.
Before deciding what to do, assemble a record for each invoice:
- Invoice amount and contractual due date.
- Date payment arrived and how many days late it was.
- Any notice, complaint, promise to pay, cure or further delay.
- Whether you accepted late payment and continued work, and what was said at the time.
- Any practical effect on the project, such as delayed work or costs incurred.
Keep the agreement, invoices, remittance records and communications together. Acceptance of late payment may have consequences for your rights depending on the wording and governing law, so get advice on the history rather than assuming your position is unchanged.
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Compare termination with other responses
Termination is not the only possible response to late payment. Each option has its own legal basis, procedure and commercial consequences; a right to pursue a debt or interest does not, by itself, establish a right to end the contract.
| Response | What to check | Main caution |
|---|---|---|
| Terminate | Express clause or legal basis, trigger, notice and cure requirements, and deadline to act. | Wrongful termination can itself lead to a breach dispute and potential liability. |
| Pursue the debt | Amount due, supporting records and any collection process available under the agreement and local law. | Debt recovery is separate from the right to terminate. |
| Claim interest or recovery costs | Whether a statutory or contractual remedy applies in your jurisdiction and to this transaction. | Eligibility and calculation depend on the governing rules. |
| Pause future work | Whether the contract or applicable law permits suspension, and what notice is required. | Stopping work without a right to do so may create a separate breach issue. |
| Renegotiate or seek a demand letter | Whether revised payment terms or a formal demand could resolve the issue while preserving rights. | Check whether any agreement or conduct changes your existing position. |
Jurisdiction-specific examples are not general rules
United Kingdom: late-payment remedies
UK Government guidance says agreed payment periods are usually limited to 30 days for public authorities and 60 days for business transactions; a longer business-to-business period may be agreed if fair to both businesses. If no payment date is agreed, the guidance says payment is late 30 days after the later of invoice receipt or delivery or performance. Eligible suppliers may claim statutory interest and debt-recovery costs. These remedies concern late commercial payment; they do not establish a termination right. Check the current UK Government guidance and whether it applies to your transaction.
United States: covered federal procurement contracts
Part 49 of the US Federal Acquisition Regulation describes a cure notice period of 10 days or longer for certain failures under covered federal procurement contracts. This procedure is specific to that procurement regime; it is not a general cure period for private construction contracts. See FAR Part 49.
Before you end the contract
- Confirm the governing law and the precise payment and termination wording.
- Match each late payment to the contract’s default trigger and any cure or repeat-default conditions.
- Check that any required notice is properly served and that you have not missed a deadline.
- Assess the effect of accepting past late payments, continuing work, or making assurances about performance.
- Ask a qualified lawyer in the relevant jurisdiction to review the notice history and the consequences of termination before you stop work or give notice.
Do not send a generic termination notice based only on the fact that the client has paid late several times. A lawyer can assess whether your specific clause has been triggered, whether a common-law or statutory right may apply, and how to protect your position while addressing unpaid invoices.
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