Description
Email: andy@freelancequantitysurveyor.co.uk
Late payments in construction are a big problem throughout the UK. Good cashflow can make or break a construction company.
The late payment templates we provide can be used in two different ways:
Late Payments In Construction – Seven Day Notice
Under section 112 of the construction act regulations, all construction contracts will by default include for the right to withdraw from site due to non-payment. To withdraw from site the construction contractors payment must be due and if a payment is due a seven day notice must have been issued.
If payment is not forthcoming to the full payment amount that is due within seven days, the contractor can legally withdraw from site until the late payment is settled. At which point the construction contractor must immediately return to site and continue their contractual works.
However the seven day notice we provide is set out exactly as required by the construction act. You just need to fill out your company details, the details of the late payment and the details of the contractor who has not paid the due payment.
Three Reminder Letters for Late Payments
The late payments in construction pack also includes for three reminder letter templates for late payments.
- Reminder of Payment Letter
- 2nd Reminder of Payment Letter
- Find Demand Letter
Each letter should be sent approx seven days apart.
The final demand letter includes for a clause to charge interest. Also the collection of fees under the Late Payments of Commercial Debts legislation.
Cashflow management is the most important task for any company and cashflow should be prioritized over every other aspect of the business. If a company does not achieve good cashflow, ultimately they cant pay their own suppliers and/or subcontractors. A company that is profitable on paper could in theory go bankrupt because of poor cashflow.
Don’t cut any corners and take cashflow collection very seriously. If you are a contractor or a construction estimator this is always important.
We also provide other construction templates such as the vesting certificate template
