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Legal text for SACC item
The section entitled "Conditions precedent to payment" of the general conditions is deleted and replaced with the following:
- No payment will be made to the Contractor unless or until invoices, inspection notes, and all other documents required by Canada are submitted in accordance with either the terms of the Contract or the instructions of Canada.
- When costs have been paid by the Contractor, Canada will make no payment to the Contractor unless or until the Contractor, if required by Canada, establishes to the satisfaction of Canada that the materials, parts, work in process, or finished work are free from all claims, liens, attachments, charges, or encumbrances.
- When costs have accrued in the accounts of the
Contractor as liabilities to be discharged in the normal course of
business, Canada will make no payment to the Contractor unless or
until the Contractor, if required by Canada, establishes to the
satisfaction of Canada that :
- the Contractor is not, in the ordinary course of business, delinquent in discharging any accrued liabilities that have arisen under the Contract,
- payment made to the Contractor by Canada under the Contract will be used only to discharge such liabilities, and
- upon such discharge, the materials, parts, work in process, and finished work will be free from all claims, liens, charges, or encumbrances.
- For finished work, Canada will make no payment to the Contractor unless or until such finished work has been inspected and accepted in accordance with the terms of the Contract.