Builder Demand Letter for Nigeria

Builder Demand Letter Template for Nigeria

A Builder Demand Letter is a formal legal document used in Nigeria's construction industry to request payment for completed construction works or services. Operating under Nigerian construction and contract law, particularly the Builders (Registration, etc.) Act and CORBON regulations, this document serves as a professional and legally-sound method for builders to recover outstanding payments. It includes detailed project information, payment history, and specific demands while maintaining compliance with Nigerian legal requirements for debt recovery and construction industry standards.

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What is a Builder Demand Letter?

The Builder Demand Letter is a crucial document in Nigeria's construction industry, used when payment issues arise after the completion of construction works or services. This document serves as a formal prerequisite to legal action and demonstrates professional attempt at debt recovery before pursuing court proceedings. The letter must comply with Nigerian construction industry regulations, including the Builders (Registration, etc.) Act and CORBON requirements, while adhering to local contract law principles. It typically includes comprehensive project details, payment histories, work completion evidence, and clear payment demands, making it an essential tool for construction professionals seeking to recover outstanding payments while maintaining professional relationships and legal compliance.

What sections should be included in a Builder Demand Letter?

1. Letterhead and Date: Professional letterhead including sender's business details, registration numbers, and current date

2. Recipient Details: Full name and address of the debtor, including business registration details if applicable

3. Subject Line: Clear indication that this is a demand letter regarding unpaid construction services

4. Project Identification: Specific details about the construction project, including location and contract reference numbers

5. Debt Details: Precise amount owed, including original contract amount, any variations, and current outstanding balance

6. Work Completion Statement: Declaration of works completed according to contract specifications

7. Payment History: Summary of payments received and outstanding amounts

8. Legal Basis: Reference to relevant contract terms and Nigerian construction laws supporting the demand

9. Demand Statement: Clear statement of demand for payment, including payment deadline

10. Consequences of Non-Payment: Statement of intended legal action if payment is not received

11. Payment Instructions: Clear instructions for how and where to make the payment

12. Closing: Professional closing with contact details for response

What sections are optional to include in a Builder Demand Letter?

1. Interest Calculation: Include when claiming interest on overdue amounts as per contract terms

2. Dispute History: Include when there have been previous attempts to resolve payment issues

3. Work Quality Defense: Include when anticipating or addressing quality-related disputes

4. Previous Correspondence: Include when referencing previous payment requests or relevant communications

5. Mediation Offer: Include when willing to enter mediation before legal proceedings

6. Partial Payment Terms: Include when willing to accept payment in installments

7. Professional Body References: Include when relevant to reference CORBON or NIOB registrations and standards

What schedules should be included in a Builder Demand Letter?

1. Schedule A - Contract Documents: Copies of relevant contract documents and variations

2. Schedule B - Payment Records: Detailed record of all payments received and outstanding invoices

3. Schedule C - Work Completion Evidence: Photos, certificates, or other evidence of completed work

4. Schedule D - Communication Log: Record of relevant previous communications regarding payment

5. Schedule E - Interest Calculations: Detailed breakdown of interest calculations if applicable

6. Schedule F - Professional Certifications: Copies of relevant builder registrations and certifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Nigeria

Publisher

Genie AI

Document Type

Demand Letter

Cost

Free to use
Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Property

Industrial Construction

Government and Public Works

Healthcare Facilities

Educational Institutions

Retail Development

Hospitality

Relevant Teams

Legal

Finance

Construction Operations

Project Management

Contract Administration

Credit Control

Collections

Commercial Operations

Account Management

Risk Management

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Quantity Surveyor

Building Contractor

Construction Company Owner

Legal Counsel

Finance Manager

Account Manager

Collections Specialist

Construction Site Supervisor

Operations Director

Commercial Manager

Credit Controller

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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