The Construction Demand Letter For Payment is utilized when a contractor has completed work under a construction contract but has not received payment as agreed. This document, governed by English and Welsh law, particularly the Construction Act and related legislation, formally demands payment while preserving legal rights. It typically includes details of the work completed, payment terms, amounts outstanding, and relevant contractual provisions. The letter serves as both a formal demand and a precursor to potential legal action, making it an essential tool in construction payment disputes.
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1. Sender Details: Full company name, address, and contact information of the party sending the demand letter
2. Recipient Details: Full company name, address of the debtor receiving the demand letter
3. Project Reference: Contract/Project number and description identifying the specific construction project
4. Payment Details: Amount owed, payment terms, due dates, and specific payment requirements
5. Payment History: Summary of previous payments made and outstanding amounts
6. Demand Statement: Clear and unambiguous statement demanding payment with reference to relevant legislation
7. Legal Basis: Reference to relevant contract terms and legislation supporting the payment demand
8. Timeline for Response: Specific deadline for payment and consequences of non-payment
1. Interest Calculation: Statutory interest calculations under the Late Payment of Commercial Debts (Interest) Act 1998
2. Previous Correspondence: Reference to previous payment requests and communications regarding the debt
3. Threat of Legal Action: Statement of intention to pursue legal remedies including adjudication or court proceedings
1. Invoice Copies: Copies of all relevant unpaid invoices related to the construction project
2. Payment Notices: Copies of statutory payment notices issued under the Construction Act
3. Contract Excerpts: Relevant sections of the construction contract supporting the payment claim
4. Payment Schedule: Detailed breakdown of amounts owed, payment dates, and any applicable interest calculations
Relevant legal definitions
Contract
Project
Works
Payment Due Date
Outstanding Amount
Interest Rate
Payment Notice
Pay Less Notice
Completion Date
Construction Operations
Contract Sum
Interim Payment
Final Payment
Payment Application
Practical Completion
Site
Working Day
Statutory Interest
Construction Contract
Employer
Contractor
Payment Terms
Due Date
Final Date for Payment
Default Payment Provisions
Adjudication
Suspension of Works
Late Payment Compensation
Project Manager
Contract Administrator
Project
Works
Payment Due Date
Outstanding Amount
Interest Rate
Payment Notice
Pay Less Notice
Completion Date
Construction Operations
Contract Sum
Interim Payment
Final Payment
Payment Application
Practical Completion
Site
Working Day
Statutory Interest
Construction Contract
Employer
Contractor
Payment Terms
Due Date
Final Date for Payment
Default Payment Provisions
Adjudication
Suspension of Works
Late Payment Compensation
Project Manager
Contract Administrator
Clauses
Identification of Parties
Reference to Contract
Payment Terms
Amount Due
Payment History
Interest Calculation
Demand Statement
Statutory References
Notice Requirements
Payment Due Date
Right to Suspend Works
Response Period
Legal Consequences
Dispute Resolution
Supporting Documentation
Bank Details
Previous Correspondence
Adjudication Rights
Statutory Compensation
Late Payment Provisions
Reference to Contract
Payment Terms
Amount Due
Payment History
Interest Calculation
Demand Statement
Statutory References
Notice Requirements
Payment Due Date
Right to Suspend Works
Response Period
Legal Consequences
Dispute Resolution
Supporting Documentation
Bank Details
Previous Correspondence
Adjudication Rights
Statutory Compensation
Late Payment Provisions
Relevant Industries
Relevant Teams
Relevant Roles
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