The Builder Demand Letter is a critical document in the UAE construction industry used when payment issues arise between contractors, developers, or other construction project stakeholders. This document serves as a formal notice under UAE Civil Code (Federal Law No. 5 of 1985) and Commercial Transactions Law (Federal Law No. 18 of 1993), typically issued when payment for completed construction work is overdue. The Builder Demand Letter represents a crucial step before initiating legal proceedings, demonstrating the sender's attempt to resolve the payment dispute amicably while preserving legal rights. It must include specific details about the project, outstanding amounts, completion status, and payment terms, all while adhering to UAE legal requirements for formal notices. This document is particularly important in the UAE construction sector, where formal documentation of payment demands is essential for potential future legal proceedings.
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1. Sender's Details: Full legal name, address, and contact information of the construction company/builder
2. Date: Current date of the demand letter
3. Recipient's Details: Full legal name and address of the party owing payment
4. Project Reference: Clear identification of the construction project, including project name, location, and contract reference numbers
5. Payment Claim Details: Specific amount owed, including breakdown of principal sum and any applicable interest
6. Background of Work Completed: Brief description of the work performed and completion status
7. Payment History: Summary of previous payments received and outstanding balance
8. Legal Basis: Reference to relevant contract terms and UAE laws supporting the payment claim
9. Demand Statement: Clear statement of demand for payment, including payment deadline
10. Consequences of Non-Payment: Statement of legal actions that will be taken if payment is not received
11. Closing: Professional closing statement, signature block, and company details
1. Previous Correspondence: Reference to prior payment requests and communications - include when there has been significant previous correspondence
2. Dispute History: Summary of any relevant disputes or disagreements - include when there are contested items
3. Site Access Details: Information about site access for verification - include when relevant to the payment dispute
4. Third Party Certifications: Reference to engineer/consultant certifications - include when work completion has been certified
5. Settlement Proposal: Proposed payment plan or settlement terms - include when willing to negotiate payment terms
1. Schedule A - Payment Breakdown: Detailed breakdown of all amounts claimed, including original contract sum, variations, and current claim
2. Schedule B - Work Completion Evidence: Photos, completion certificates, or other evidence of work completed
3. Schedule C - Contract Excerpts: Relevant excerpts from the construction contract supporting the claim
4. Schedule D - Previous Invoices: Copies of relevant invoices and payment certificates
5. Schedule E - Correspondence History: Copies of relevant previous payment requests and communications
Relevant legal definitions
Contract
Project
Works
Outstanding Amount
Due Date
Payment Certificate
Practical Completion
Principal Contract
Site
Variation Orders
Contract Sum
Payment Terms
Interest Rate
Working Days
Notice Period
Completion Certificate
Progress Payment
Retention Amount
Default Interest
Contractor's Claims
Payment Application
Project Manager
Engineer
Employer
Certified Amount
Project
Works
Outstanding Amount
Due Date
Payment Certificate
Practical Completion
Principal Contract
Site
Variation Orders
Contract Sum
Payment Terms
Interest Rate
Working Days
Notice Period
Completion Certificate
Progress Payment
Retention Amount
Default Interest
Contractor's Claims
Payment Application
Project Manager
Engineer
Employer
Certified Amount
Clauses
Identification
Reference
Project Details
Payment Claim
Work Completion
Contract Compliance
Payment History
Interest Calculation
Default Notice
Demand Statement
Legal Basis
Payment Terms
Compliance Statement
Supporting Documentation
Legal Consequences
Time Limitation
Dispute Resolution
Authorization
Without Prejudice
Reservation of Rights
Reference
Project Details
Payment Claim
Work Completion
Contract Compliance
Payment History
Interest Calculation
Default Notice
Demand Statement
Legal Basis
Payment Terms
Compliance Statement
Supporting Documentation
Legal Consequences
Time Limitation
Dispute Resolution
Authorization
Without Prejudice
Reservation of Rights
Relevant Industries
Construction
Real Estate Development
Infrastructure Development
Commercial Construction
Residential Construction
Industrial Construction
Government Construction
Engineering Services
Building Materials
Project Management
Relevant Teams
Legal
Finance
Construction Operations
Contract Administration
Project Management
Commercial Operations
Credit Control
Claims Management
Account Management
Executive Management
Relevant Roles
Construction Manager
Project Manager
Contract Manager
Legal Counsel
Chief Financial Officer
Quantity Surveyor
Construction Director
Claims Manager
Commercial Manager
Finance Director
Managing Director
Site Manager
Operations Manager
Account Manager
Credit Controller
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