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5 tips in managing late payments by construction lawyers

Late payments are a common problem in the building industry usually handled by construction lawyers, regardless of country. Having an unsteady cash flow can lead to more serious problems like delayed work, unpaid employee wages or even bankruptcy.

So, if you think that your client is about to give you late payment call building and construction lawyers, or here are some tips to get through it alone:

Understand your rights and obligations stated in the contract.

Know the relevant laws that can help you recover late payment faster. Laws related to debt recovery and Security of Payment helps you get paid for your hard work.

Through enforcing your rights to these laws, you can recover unpaid amounts through progress payment. You may even put an interest to the amount if your building laws permit it.

Agree on a fixed payment schedule.

As much as possible, set a payment schedule and put it on paper. Agree on the dates that you must get paid the respective amount that they owe. If you do this, you will get to anticipate your cashflow. You even get to easily remind your client that its payback time.

Since they have agreed to the dates, there are fewer reasons that your client will pay you late. If they insist, then you have to remind them about your documented agreement.

Negotiate through Construction Lawyers.

Don’t be afraid to speak up if you think that the client is about to rip you off. If there are terms that will lead you to get paid late, then do your best to prevent it. Propose solutions that would benefit both parties and safeguard your rights.

It can be an intimidating task but your business is on the line here. Late payments can cause you worse problems for your trade so don’t hesitate to talk to your client through it.

Document your invoices and other related supporting documents.

Keeping a copy of all of your transactions will help you especially when you need legal proof. So when disputes arise, you would have something to show and remind to your client on the disputed amount.

Having everything recorded can also help you keep track of how much should a client still pay you. It keeps you organized, and you get easily see if the client starts to pay you late.

Don’t hesitate to take things to court with your construction lawyer.

If you tried talking things through but they won’t pay you, don’t hesitate to file your case to court. What they are doing is against the law. You have the right to get paid on your agreed dates written in the contract.

Being afraid to sue the big guys are normal, but you need to enforce your rights. You deserve to get paid for hard work. When you are backed with documents that support your claim, then there’s nothing to be afraid of.

Also, this is where construction lawyers can greatly help you. They can help you understand your rights deeper and the legal processes to enforce them. So that, you can be confident to get paid back.

Aside from representing you in court, a construction lawyer Sydney can help in giving legal advice on doing these five tips. They thoroughly help contractors review their contracts, and in mediating between negotiations when needed. Lawyers can help you resolve the problem before it could escalate into a building dispute.





John Dela Cruz is the Principal Lawyer of Contracts Specialist. As a construction lawyer based in Sydney, he gives legal assistance to both builders and contractors on making their Payment Claims and Payment Schedules.


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