Transitional Provision

Section 25 of the Federal Prompt Payment for Construction Work Act (the “Act”) states that for one year after the day on which the Act comes into force, the Act does not apply in respect of the following contracts to perform construction work:

  1. a contract entered into by a Contractor, before the day on which the Act comes into force, with His Majesty or a Service Provider; and
  2. a contract entered into by a Subcontractor, before the day on which the Act comes into force or within one (1) year after that day, with a Contractor referred to in paragraph (a) or with any other Subcontractor.

For assistance determining what law applies to a construction project, please consult a construction lawyer.

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