The Construction Demand Letter For Payment is a critical document used in Hong Kong's construction industry when seeking to recover outstanding payments for completed construction work or services. It serves as a formal precursor to legal proceedings and must comply with Hong Kong's legal framework, including the Security of Payment Legislation (SOPL) implemented in 2024. The document is typically used when informal payment requests have been unsuccessful and the creditor needs to escalate the matter. It includes detailed information about the outstanding payment, reference to contract terms, evidence of completed work, and clear payment deadlines. The letter should be drafted carefully as it may later serve as evidence in legal proceedings, whether in Hong Kong courts or alternative dispute resolution forums.
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1. Letterhead and Date: Company letterhead, current date, and proper reference numbers
2. Recipient Details: Full legal name and address of the recipient company/individual
3. Project Identification: Clear identification of the construction project and contract reference
4. Payment Claim Details: Specific amounts owed, including breakdown of principal sum, interest (if applicable), and payment due dates
5. Legal Basis: Reference to relevant contract clauses, completed work, and payment terms
6. Payment History: Brief summary of previous payments received and outstanding amounts
7. Formal Demand: Clear statement demanding payment with specific amount and deadline
8. Consequences: Statement of intended actions if payment is not received by the deadline
9. Closing: Professional closing with contact details for payment arrangements
1. Previous Correspondence: Reference to prior payment requests and communications - include if there has been previous correspondence
2. Interest Calculation: Detailed breakdown of interest calculations - include if claiming interest on overdue amounts
3. Dispute History: Summary of any disputed items and their resolution status - include if there are disputed items
4. Statutory Declaration: Declaration of truth of claims - include if required by local practice or if anticipating legal proceedings
5. Without Prejudice Save As To Costs: Legal reservation - include if the letter contains any settlement proposals
1. Schedule A - Payment Summary: Detailed breakdown of all outstanding payments, including invoice numbers and dates
2. Schedule B - Work Completion Evidence: List of completed works with corresponding certification or approval documents
3. Schedule C - Contract Extract: Relevant excerpts from the construction contract regarding payment terms
4. Appendix 1 - Supporting Documents: Copies of relevant invoices, delivery notes, and completion certificates
5. Appendix 2 - Communication Log: Chronological record of payment-related communications
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