The Construction Demand Letter For Payment is a crucial document in Malaysia's construction industry payment recovery process. It is typically used when a party has not received payment for completed construction work or services within the contractually agreed timeframe. The document must comply with the Construction Industry Payment and Adjudication Act 2012 (CIPAA) and other relevant Malaysian legislation, including the Contracts Act 1950. It serves as a formal demand for payment and often represents a critical step before initiating legal proceedings or statutory adjudication. The letter should include comprehensive details about the project, specific payment claims, supporting evidence, and clear payment deadlines, while maintaining professional tone and legal compliance.
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1. Sender's Details: Full company name, registration number, and complete address of the party making the payment demand
2. Date: Current date of the letter
3. Recipient's Details: Full company name, registration number, and complete address of the party from whom payment is demanded
4. Reference Line: Project name, contract reference number, and any relevant previous correspondence references
5. Subject Line: Clear indication that this is a Payment Demand Letter
6. Contract Details: Brief description of the contract, including date of execution and scope of works
7. Payment Details: Specific amount owed, payment terms as per contract, and due dates
8. Default Description: Clear statement of the payment default and duration of the delay
9. Legal Basis: Reference to relevant contract clauses and CIPAA 2012 provisions
10. Demand Statement: Formal demand for payment with specific deadline
11. Consequences: Statement of intended legal action if payment is not received
12. Closing: Formal closing and signature block
1. Previous Demands: Reference to previous payment demands or correspondence, if any
2. Partial Payments: Details of any partial payments received and remaining balance
3. Interest Calculation: Calculation of interest on overdue payment if applicable under the contract
4. Without Prejudice: Statement preserving legal rights, used when there are ongoing negotiations
5. Dispute History: Brief summary of any relevant dispute history or proceedings
1. Schedule A - Payment Certificate: Copy of relevant payment certificates or applications
2. Schedule B - Contract Extract: Relevant extracts from the construction contract showing payment terms
3. Schedule C - Work Progress Evidence: Documentation proving completion of work (photos, certificates, etc.)
4. Schedule D - Previous Correspondence: Copies of relevant previous payment requests or communications
5. Schedule E - Invoice Details: Detailed breakdown of amounts claimed including any variations
6. Schedule F - Interest Calculations: Detailed calculations of any interest claimed on overdue payments
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure Development
Commercial Property
Residential Development
Industrial Construction
Public Infrastructure
Engineering Services
Architecture and Design
Project Management
Government Construction
Mining Construction
Oil and Gas Construction
Relevant Teams
Legal
Finance
Project Management
Commercial
Contracts Administration
Operations
Account Management
Risk Management
Claims Management
Construction Management
Relevant Roles
Project Manager
Construction Manager
Contract Administrator
Quantity Surveyor
Finance Director
Chief Financial Officer
Construction Director
Legal Counsel
Claims Manager
Commercial Manager
Account Manager
Project Director
Managing Director
Contract Manager
Financial Controller
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