The Request For Payment Letter (Construction) is a crucial document in the South African construction industry used to formally request payment for completed construction work or services. It is typically issued when a construction milestone has been reached or when periodic payment is due according to the contract terms. The document must comply with South African construction law, including the Construction Industry Development Board Act and BIFSA regulations. It should contain detailed information about the work completed, payment amount requested, supporting documentation, and relevant contract references. This letter serves multiple purposes: it creates a formal record of the payment request, helps maintain proper payment documentation, and can be used as evidence in case of payment disputes. The document is particularly important in the South African context where construction payment terms are strictly regulated and formal documentation is essential for legal compliance and dispute resolution.
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1. Letterhead and Date: Company details, logo, address, contact information, and date of the letter
2. Recipient Details: Full name, title, company name, and address of the recipient
3. Reference Information: Project name, contract number, invoice number, and any other relevant reference numbers
4. Subject Line: Clear indication that this is a payment request with relevant project/contract reference
5. Payment Request Statement: Clear statement of the total amount due and payment terms as per the contract
6. Work Completion Status: Brief description of completed work that corresponds to this payment request
7. Payment Details: Banking details and preferred payment method
8. Closing and Signature: Professional closing, name and signature of authorized person
1. Payment History Reference: Include when there are previous related payments or when establishing a payment timeline
2. Urgent Notice: Include when payment is overdue or when there are critical timeline considerations
3. Dispute Resolution Reference: Include when there are disputed items or previous payment issues that need addressing
4. Conditional Statements: Include when payment is subject to specific conditions or milestones
5. Legal Notice: Include when the letter serves as a formal notice before legal action
6. Interest Claims: Include when claiming interest on overdue payments as per contract terms
1. Schedule A - Payment Calculation: Detailed breakdown of amounts claimed, including original contract sum, variations, and previous payments
2. Schedule B - Work Progress Report: Detailed description of completed work with percentage completion metrics
3. Schedule C - Supporting Documents: List of attached documents such as invoices, certificates, and approvals
4. Appendix 1 - Progress Photographs: Visual evidence of completed work (if applicable)
5. Appendix 2 - Certification Documents: Copies of relevant certificates, such as completion certificates or quantity surveyor reports
6. Appendix 3 - Contract Extract: Relevant excerpts from the contract regarding payment terms and conditions
Relevant legal definitions
Contract
Contract Sum
Payment Certificate
Works
Project
Payment Due Date
Practical Completion
Variation Order
Bill of Quantities
Site
Payment Period
Outstanding Amount
Interest Rate
Payment Terms
Progress Payment
Retention Amount
Completion Certificate
Contract Documents
Payment Schedule
Construction Period
Principal Agent
Approved Work
Milestone
Defects Liability Period
VAT
Contract Sum
Payment Certificate
Works
Project
Payment Due Date
Practical Completion
Variation Order
Bill of Quantities
Site
Payment Period
Outstanding Amount
Interest Rate
Payment Terms
Progress Payment
Retention Amount
Completion Certificate
Contract Documents
Payment Schedule
Construction Period
Principal Agent
Approved Work
Milestone
Defects Liability Period
VAT
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure Development
Commercial Construction
Residential Construction
Industrial Construction
Civil Engineering
Property Development
Public Works
Mining Infrastructure
Relevant Teams
Finance
Legal
Construction Operations
Project Management
Commercial
Contracts Administration
Accounts Receivable
Construction Site Operations
Risk Management
Document Control
Relevant Roles
Construction Manager
Project Manager
Quantity Surveyor
Contract Administrator
Financial Manager
Construction Site Manager
Commercial Director
Chief Financial Officer
Accounts Receivable Manager
Construction Director
Legal Counsel
Contract Manager
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