How to Avoid Mistakes There are some easy ways to avoid payment delays as well as maintaining relationships with your employers/clients:
How we can help The construction industry has many employers who want to hold back payment, often because they fear the work contracted out won’t be completed properly or on time. On the other side of the coin, contractors want and need to be paid promptly. Getting the job done is a collaborative process between the two parties, hopefully building and maintaining a good relationship in the process. Managing the cash flow between the two is a vital part of business operations, and one where the services of a trusted professional adviser are crucial. We have a team of Business Advisory specialists who have been selected from across our business for their experience in the construction sector and who are ready to help you with all aspects of your financial and business affairs. Our construction team includes tax, accountancy, insurance, and financial planning professionals who have extensive expertise and knowledge of trends in this sector. Get in touch with Ben or one of the Business Advisory team by calling 0330 058 6559 or email hello@scruttonbland.co.uk
•
The total contract value originally quoted in the project documentation:
•
The financial value of all work completed to date, and also details of any materials stored on and off site
•
Make sure that any payment applications are in line with regulatory guidelines for the Housing Grants, Construction and Regeneration Act 1996
•
The total amount of money still owing to you
•
The amount you have earned to date from the client, compared to the payments you have so far received
•
Be punctual with sending in your payment applications
•
Check that all the information and supporting evidence is included within your application. This must include visual proof of work performed Make sure that other compliance requirements such as insurance are in place and up to date, and that the client has been informed Follow that up with a phone call and/or email to make sure everything has been received and no other documentation is needed
•
The financial value of any amounts retained
•
The balance that remains to complete the contracted project.
•
You may also choose to include supplementary information such as:
•
A breakdown of the rates you charge for each element of the project, matched against the value or cost of the item Any changes that have been made over the course of the project so far which may have affected costs, such as materials, schedules, alterations to work requirements etc Visual evidence, such as pictures taken on your phone, to show that you have completed the work you are charging for, or that you are storing materials that have been purchased for the job Invoices from suppliers for materials delivered for the job, but which are still to be paid
•
•
Resolving Disagreements Even when all your paperwork is complete and submitted on time, there will inevitably be situations where the employer/client who owes you money disputes your application and tries to pay less than you have asked for. In order to legally do this the client who owes you payment needs to issue a Pay Less Notice to you, which must be served within the time periods set by the contract with you, prior to the final date for payment. If the employer/payer has not served a Pay Less notice, there may be an option for a Smash and Grab adjudication. This route focuses on enforcing payment and recovering monies currently owed as soon as possible, without having to deal with claims and counter-claims for delays and charges. It is not designed to determine the total value of what is owed, rather it aims to resolve what needs to be paid now, and as such it won’t resolve any arguments over the true value of costs further down the line. Both of these options are complex legal issues and require professional advice before they are relied on to deal with any contractual disputes.
•
•
•
Receipts from suppliers for materials delivered for the job which have been paid
•
Compliance documentation which provides evidence of regulatory requirements such as insurances, VAT registration, and the signed subcontract
P R O P E R T Y A N D CONSTRUCTION | SCRUTTON BLAND | 1 5
Made with FlippingBook Learn more on our blog