Condition Precedent

Condition Precedent is next on our A-Z of Construction Contractual Terms.

In a construction contract, a condition precedent is a term which sets out events that need to happen in order for a part of the agreement to come into force. For example, payment in a construction contract may only happen if the following conditions are satisfied:

(a)   The Contractor has carried out the Works in accordance with the Contract;

(b)   The Contractor provides a Payment Application on or by a certain day;

(c)    The Application for Payment includes:

·        The sum applied for;

·        The basis of calculation for the sum applied for; and

·        The period of time to which the Payment Application relates.