The Construction Demand Letter For Payment is a crucial document in Nigerian construction law practice, used when payment for construction work or services remains outstanding despite completion or reaching payment milestones. This document serves as a formal prerequisite to legal action under Nigerian law, demonstrating reasonable attempts to resolve payment disputes before pursuing litigation. It typically follows unsuccessful informal payment requests and precedes more serious legal measures such as liens or court proceedings. The letter must comply with Nigerian contract law and construction industry regulations, including relevant state-specific requirements. It should detail the project specifics, outstanding amounts, payment history, and provide a reasonable deadline for payment, while maintaining professional tone and legal validity.
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1. Sender's Details: Full business name, address, and contact information of the party making the demand
2. Date: Current date of the letter
3. Recipient's Details: Full business name, address of the debtor company/individual
4. Project Reference: Clear identification of the construction project including project name, location, and contract reference number
5. Outstanding Payment Details: Specific amount owed, including breakdown of original contract sum, payments received, and current outstanding balance
6. Payment History: Brief chronology of previous payments and payment attempts
7. Legal Basis: Reference to relevant contract terms and legal rights for demanding payment
8. Demand Statement: Clear statement of demand for payment, including exact amount and deadline
9. Consequences: Statement of intended legal action if payment is not received by the specified deadline
1. Previous Correspondence: Reference to previous payment requests and communications - include when there has been significant prior communication
2. Interest Calculation: Breakdown of any applicable interest charges - include when claiming interest on overdue amounts
3. Dispute Resolution: Reference to dispute resolution procedures - include when specified in the original contract
4. Without Prejudice: Legal disclaimer to protect rights in future legal proceedings - include when planning potential litigation
5. Payment Plan Option: Proposed payment schedule alternative - include when willing to accept installment payments
1. Payment Schedule: Detailed breakdown of all invoices, amounts, and due dates
2. Contract Excerpts: Relevant sections from the original contract regarding payment terms
3. Invoice Copies: Copies of all unpaid invoices referenced in the demand
4. Work Completion Evidence: Documentation proving completion of claimed work (photos, certificates, etc.)
5. Communication Log: Chronicle of relevant communications regarding payment
Relevant legal definitions
Clauses
Identification of Parties
Project Reference
Payment Obligation
Outstanding Amount
Payment History
Default Notice
Interest Calculation
Demand Period
Legal Compliance
Contract Reference
Dispute Resolution
Legal Consequences
Payment Instructions
Supporting Documentation
Project Completion Status
Previous Correspondence
Reservation of Rights
Project Reference
Payment Obligation
Outstanding Amount
Payment History
Default Notice
Interest Calculation
Demand Period
Legal Compliance
Contract Reference
Dispute Resolution
Legal Consequences
Payment Instructions
Supporting Documentation
Project Completion Status
Previous Correspondence
Reservation of Rights
Relevant Industries
Construction
Real Estate
Infrastructure Development
Commercial Property
Residential Development
Industrial Construction
Public Works
Energy Infrastructure
Transportation Infrastructure
Healthcare Facilities
Relevant Teams
Legal
Finance
Construction Management
Accounts Receivable
Commercial Operations
Project Management
Contract Administration
Credit Control
Operations
Risk Management
Relevant Roles
Construction Project Manager
Contract Administrator
Legal Counsel
Finance Director
Chief Financial Officer
Construction Site Manager
Quantity Surveyor
Commercial Manager
Accounts Receivable Manager
Collections Specialist
Project Director
Construction Company Owner
Financial Controller
Legal Manager
Credit Control Manager
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