7.4. Payment of Fee
To the extent permitted by law Principal shall not be liable to pay any invoice of Contractor unless and until Principal has received payment from Client in respect of the invoice in question, provided always that Principal shall promptly invoice Client in respect of Contractor’s invoices in accordance with the Facilities Management Agreement and shall use reasonable endeavours to procure that Client pays Principal in respect of such invoices in accordance with the Facilities Management Agreement. For the avoidance of doubt, the risk of insolvency of Client will be on Contractor, and if Principal does not receive payment from Client due to Client’s insolvency or inability to pay Contractor will waive any claims against Principal. Contractor will be liable for any costs incurred by Principal in recovering from Client sums owed to Contractor.
The Principal must pay the amount it is satisfied is due to the Contractor within sixty days (60) days of receipt of each invoice, provided that (i) the Principal has received payment from its Client for the work of the Contractor for which payment is sought and (ii) that the Contractor has properly performed the Services and there are no disputes over the invoice amount. In the event that the Contractor has failed to perform the Services in accordance with the Agreement (including changes to the Services under clause 2.3) in which case, the Principal may withhold payment of the invoice until the performance criteria for the Services have been met by the Contractor. If the Principal disputes any amount included in an invoice, the Principal must pay the amount, if any, not in dispute.