115.—(1) The contractor may give notice in writing (a “late payment notice”) to the Local Health Board if the Local Health Board has failed to make any payments due to the contractor in accordance with any term of the contract regarding prompt payment which has the effect specified in regulation 20(1) and the contractor must specify in the late payment notice the payments that the Local Health Board has failed to make in accordance with that regulation.
(2) Subject to sub-paragraph (3), the contractor may, at least 28 days after having served a late payment notice, terminate the contract by a further written notice if the Local Health Board has still failed to make the payments due to the contractor, and that were specified in the late payment notice served on the Local Health Board pursuant to sub-paragraph (1).
(3) If, following receipt of a late payment notice, the Local Health Board refers the matter to the NHS dispute resolution procedure within 28 days of the date upon which it is served with the late payment notice, and it notifies the contractor in writing that it has done so within that period of time, the contractor may not terminate the contract pursuant to sub-paragraph (2) until—
(a)there has been a determination of the dispute pursuant to paragraph 106 and that determination permits the contractor to terminate the contract, or
(b)the Local Health Board ceases to pursue the NHS dispute resolution procedure,
whichever is the sooner.
(4) This paragraph is without prejudice to any other rights to terminate the contract that the contractor may have.
Commencement Information
I1Sch. 3 para. 115 in force at 1.10.2023, see reg. 1(2)