星空传媒

Payment issues

In the current economic climate payment concerns for companies operating in the Middle East鈥檚 construction industry have included under certification, non-certification, late payment, disputed 鈥減ay when paid鈥� clauses and a total absence of payment. As regards the issues of late and non-payment which are prevalent, the following matters should be considered.

As always, start by checking the contract, and then consider your rights under the governing law of the contract. How commercially viable are the contractual and legal options available to you to pursue payment? Before proceeding with any course of action you should always decide what commercial end result you require bearing in mind the client relationship going forward. Do you need to retain an amicable relationship with the client or is immediate cash flow your priority?

Contractual considerations

What payment provisions exist in your contract? Can a late payment penalty be levied against the Employer, and if so, are you required to put him on notice to apply that penalty? Are you entitled to claim interest on late payment of certified invoices under the contract? Do you need to submit a timely notice for this?

Check for suspension provisions. Non-payment of certified invoices may entitle you to suspend or reduce the rate of work pending payment. If you suspend, who is responsible for the de-mobilisation and re-mobilisation costs? Ensure you retain sufficient documentation so that you can submit any clai