When the Engineer receives a claim from a Sub-Contractor duly approved under GCC Clause 14 to the effect that the Contractor has not met his financial obligations so far as the Sub-Contractor is concerned, the Engineer shall give notice to the Contractor either to pay the Sub-Contractor or to inform him of the reasons why payment should not be made. Should such payment not be made, or reasons not be given within the period of notice, the Engineer may, after satisfying himself that the work has been carried out, certify, and the Public Body shall meet the debt claimed by the Sub-Contractor out of the sums remaining due to the Contractor. The Contractor shall remain entirely responsible for the work in respect of which direct payment has been made.
If the Contractor gives adequate reasons for refusing to meet all or part of the debt claimed by the Sub-Contractor, the Public Body shall only pay to the Sub-Contractor such sums as are not in dispute. Sums claimed by the Sub-Contractor in respect of which the Contractor has given adequate reasons for his refusal to pay shall be paid by the Public Body only after the parties have come to an amicable settlement or after a judgment of a court has been duly notified to the Engineer.
Direct payments to Sub-Contractors shall not exceed the value at contract prices of the services performed by the Sub-Contractors for which they request payment; the value at contract prices shall be calculated or assessed on the basis of the bill of quantities, the price schedule or the breakdown of the lump sum price.
Direct payments to Sub-Contractors shall be made entirely in the currency specified in SCC Clause 59.1.
The provisions of this GCC Clause shall apply subject to the requirements of the law applicable by virtue of GCC Clause 68 concerning the right to payment of creditors who are beneficiaries of an assignment of credit or of a collateral security.
