top of page

PAYMENT AND REMEDIES FOR  NON-PAYMENT

WE’VE DONE THE WORK, NOW HOW DO WE GET PAID?

INTRODUCTION

This workshop and presentation is aimed for contractors, consultants, subcontractors and suppliers who enter into construction contracts. Lord Denning famously quoted that ‘Cashflow is the lifeblood of the Construction Industry”. Unfortunately, the Construction Industry continues to be guilty of paying the supply chain late, with onerous contractual provisions for recovery of monies. This can be a key contributor to lower margins and insolvencies. This session will focus on how construction companies and consultants can maximise their financial entitlement and raise awareness of the different remedies for late or non-payment to improve cash flow and enhance profitability.

COURSE CONTENT

This workshop will consider the following remedies for maximising cash flow and securing payment of due sums:

​

  • Tender strategies (an analysis of pricing strategies and the pitfalls of pricing rates lower to secure the contract, front loading and including contingency)

  • Recognising the signs of insolvency (client and supply chain insolvency)

  • Payment for materials off site (Drafting provisions for payment for materials off site, vesting procedures, insurance s and how to value off site materials)

  • Payment for materials on site (including provision for payment, who owns materials when delivered to site, responsibility for loss and or damage once on delivered to site)

  • Examining the payers obligation to issue payment and pay less notices (what if these obligations are not met, what are the payee’s rights in respect of payment?)

  • Suspension for non-payment (notices to suspend, suspension of all or part of your obligations due to non-payment, when can the payee exercise a right to suspend all or part of the payee’s obligations)

  • Interest on late payment (Remedies recovery under the contract and/or statutory rates and recovery of legal costs in pursuing a debt)

  • Retention payments (establishing retention payment dates and how apply for release)

  • Payer’s right to deduct or set off from due payments (an examination of cross contract set off rights and common law rights of set off and what is permitted in law)

  • Rights of termination (can a payee terminate the contract for late payment or non-payment)

  • Adjudication, litigation, winding up (a look at the different means of dispute resolution and debt recovery)

LEARNING OUTCOMES

All attendees, whether it be commercial or accounts, will acquire a sound understanding of the your  contractual and statutory rights and remedies available for non or late payment of amounts due under your contracts. All attendees shall be made aware of the preventative measures that can be put in place (such as notices and contemporaneous records) to maximise your entitlement. The session will also highlight which form of dispute resolution would be the most appropriate to pursue your outstanding debt.

DURATION OF WORKSHOP

Half or Full Day or Bitesize

PAYMENT AND PAY LESS NOTICES (GETTING IT RIGHT!)

INTRODUCTION

This workshop provides an essential practical guide to the obligations of  payers and payees who are party to ‘construction operations’ and ‘construction contracts’ as defined under the Housing Grants, Construction and Regeneration Act 1996 (‘the Act’). The substance and timing of payment and pay less notices have become a fruitful area of case law, with smash and grab adjudications becoming a new concept as a result. This workshop will provide a practical commentary about the correct approach to preparing these notices and will highlight the outcome of various cases to emphasise the importance of getting it right

COURSE CONTENT

The course content of this practical workshop will cover:

​

  • Payment obligations (an analysis of statutory payment terms for stage or interim payments, including due dates and final dates for payment; what happens if the contract does not provide effective payment terms as required by legislation?)

​

  • Due dates and final dates for payment (can you link a due date to a payment certificate being issued in another contract? Can you link the final date for payment to the issue of an invoice from the payee?)

​

  • Payment notices

    • How to prepare a payment notices and the timing of such notices;

    • What if the amount due is assessed as Nil Are payment notices still required?

    • Can you certify a negative payment if there is an overpayment?

    • Are payment notices sent by email valid or not?

    • Can payment notices include contra charges and set off (e.g. liquidated damages) or should these be dealt with in a later pay less notice?

​

  • Pay less notices

    • How to prepare a pay less notice and timing of such notices;

    • Can a late payment notice be treated as an effective pay less notice?

    • If a payee becomes insolvent, is the payer obliged to issue a pay less notice prior to withholding any payment?

​

  • Consequences of not issuing effective payment or pay less notices

    • Do interim applications or invoices default as the payment notice and what is the contractual or statutory basis for this?

    • If an interim application or invoice is submitted late, can this still be treated as a payment notice in default?

​

  • Smash and grab adjudications. If an application defaults as a payment notice, does the payer have to pay this sum in full even if the substance of the ‘true valuation’ is evidently incorrect and/or erroneous?

LEARNING OUTCOMES

All attendees will acquire a thorough understanding of the law as it applies to preparing and issuing payment and pay less notices and the consequences of not getting it right.

DURATION OF WORKSHOP

Half Day

INTERESTED IN OUR IN-HOUSE TRAINING & SEMINARS?

bottom of page