12Due date for payment

12 Due date for payment (1) A progress payment under a construction contract becomes due and payable— (a) on the date on which the payment becomes due and payable in accordance with the terms of the contract; or (b) if the contract makes no express provision with respect to the matter, on the date occurring 10 business days after a payment claim is made under Part 3 in relation to the payment. S. 12(2) inserted by No. 42/2006 s. 13. (2) Interest is payable on the unpaid amount of a progress payment that has become due and payable in accordance with subsection (1) at the greater of the following rates— (a) the rate for the time being fixed under section 2 of the **Penalty Interest Rates Act 1983**; or (b) the rate specified under the construction contract. S. 12A inserted by No. 42/2006 s. 14.