Common use of Payment and Tax Clause in Contracts

Payment and Tax. 30.1 The Commissioner shall pay the undisputed sums due to the Contractor in cleared funds within 30 days of receipt of a correctly submitted and valid invoice, submitted monthly in arrears, for work completed and Goods and/or Services supplied to the satisfaction of the Commissioner. If the Specification allows, provision of a consolidated monthly invoice on the last day for any charges due under the Agreement shall be approved by the Commissioner. 30.2 Each invoice shall contain all appropriate references and a detailed breakdown of the Goods and/or Services and shall be supported by any other documentation reasonably required by the Authorised Officer to substantiate the invoice. 30.3 Where the Contractor enters into a sub-contract with a supplier or contractor for the purpose of performing the Agreement, it shall cause a term to be included in such a sub-contract which requires payment to be made of undisputed sums by the Contractor to the sub-contractor within a specified period not exceeding 30 days from the receipt of a valid and undisputed invoice, as defined by the sub-contract requirements. This condition shall apply to any further sub-contracting throughout the supply chain. 30.4 Tax, where applicable, shall be shown separately on valid Tax invoices as a strictly net extra charge. 30.5 The Commissioner may reduce payment in respect of any Goods and/or Services which the Contractor has either failed to provide or has provided inadequately, without prejudice to any other rights or remedies of the Commissioner. 30.6 The Contractor shall not suspend the supply of the Goods and/or Services unless the Contractor is entitled to terminate the Agreement under clause 63.3 for failure to pay undisputed sum.