The Construction Demand Letter For Payment is a critical document used in the South African construction industry when payment for completed work, services, or materials remains outstanding. It serves as a formal notification and demand for payment, typically issued after previous informal payment requests have been unsuccessful. The document must comply with South African legislation, including the Construction Industry Development Board Act and debt collection regulations. It should clearly state the amount owed, provide evidence of completed work, reference relevant contract terms, and specify payment deadlines. This document often represents the final step before initiating legal proceedings and can be used as evidence in court if the dispute escalates to litigation. Its effectiveness depends on accurate documentation, clear communication of the demand, and proper inclusion of all legally required elements under South African law.
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1. Sender Details: Full company/individual name, registration number if applicable, and complete contact details of the party demanding payment
2. Recipient Details: Full details of the debtor, including correct legal entity name and address for service
3. Project Reference: Clear identification of the construction project, including project name, location, and relevant contract reference numbers
4. Payment Claim Details: Specific amount owed, breakdown of the debt, and dates of when payments became due
5. Legal Basis: Reference to the contract terms, agreements, or legal obligations that form the basis of the payment claim
6. Payment History: Summary of previous payments made and outstanding amounts
7. Demand Statement: Clear statement of demand for payment, including the total amount and deadline for payment
8. Consequences: Statement of legal actions that will be taken if payment is not received by the specified deadline
1. Interest Calculation: Include when claiming interest on overdue amounts, showing calculation method and amounts
2. Dispute History: Include when there have been previous communications or attempts to resolve the payment dispute
3. Quality Certification: Include when payment dispute relates to quality issues, confirming work meets required standards
4. Payment Plan Option: Include when willing to accept installment payments, outlining proposed payment schedule
5. Third Party Certifications: Include when payment is subject to third-party certification or approval
6. Without Prejudice Save as to Costs: Include when the letter may be part of ongoing negotiations but needs to be referenced for cost purposes in potential litigation
1. Payment Schedule: Detailed breakdown of all invoices, amounts, and due dates
2. Contract Extract: Relevant excerpts from the construction contract relating to payment terms
3. Progress Certificates: Copies of relevant progress certificates or completion certificates
4. Previous Correspondence: Copies of relevant previous payment requests or communications
5. Photos and Documentation: Visual evidence of completed work if relevant to the payment dispute
6. Witness Statements: Supporting statements from relevant parties if applicable to the payment claim
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure Development
Commercial Property
Residential Property
Industrial Construction
Civil Engineering
Architecture and Design
Building Materials and Supply
Project Management
Relevant Teams
Legal
Finance
Operations
Project Management
Commercial
Accounts Receivable
Contract Administration
Construction Management
Credit Control
Risk Management
Relevant Roles
Construction Project Manager
Contract Manager
Quantity Surveyor
Construction Site Manager
Financial Manager
Legal Counsel
Accounts Receivable Manager
Chief Financial Officer
Construction Director
Operations Manager
Commercial Director
Credit Controller
Project Coordinator
Claims Manager
Construction Administrator
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