19.10.1 The Authority should pay for Services on time and payment should not be unreasonably withheld. The Authority should comply with Government policy on late payment (e.g. agreeing payment of interest if payment is late), so Contracts should take into account the relevant provisions of the Late Payment of Commercial Debts (Interest) Act 1998. The Authority should also take steps to ensure that the Contractor complies with best practice in this area. In accordance with Government policy the Contractor should pay its sub-contractors ordinarily within 30 days, unless a different period is specified in the relevant sub-contract.
19.10.2 Required drafting for the payment of interest on overdue amounts is set out below.
19.10 Payment
The Parties will pay interest on any amount payable under this Contract not paid on the due date, for the period from that date (whether before or after any judgement) to the date of payment, at a rate equal to 1 (one) per cent above the Senior Debt Rate26 (the "Prescribed Rate") and it is agreed between the Parties that the Prescribed Rate and the provisions of this Contract relating to the payment of compensation on termination of this Contract following the occurrence of an Authority Default provide the Contractor with a substantial remedy pursuant to Sections 8 and 9 of the Late Payment of Commercial Debts (Interest) Act 1998.
means the non default interest rate as defined by the Senior Financing Agreements or such lower rate as the Parties may agree.
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26 This will relate to both disputed and undisputed amounts and takes into account the Late Payment of Commercial Debts (Interest) Act 1998 provisions and the costs of the Senior Debt Rate (at the non default rate) at that time.