Payments And Deductions
Interim Applications
An interim application is to cash flow what a proposal is to marriage: vital to get right. But whereas the only limits to how you might go about proposing to the love of your life are your budget and your imagination, an interim application needs to adhere precisely to what is laid down in your contract.
The format of an interim application and the information required often varies depending on the project and contractual terms. That’s why it pays to take expert legal advice and assistance in putting together a detailed and documented application.
For a confidential and free discussion, call us today on 01908 414990. Alternatively, email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.
Final Accounts
Final accounts play a pivotal role in construction projects. Their main purpose is to establish the final amount that an employer owes a contractor, but they also serve as a blueprint of a project’s financial performance and outcome. By presenting a transparent picture throughout the lifecycle of a project, they promote accountability and trust among clients, suppliers and contractors.
A well-prepared final account can help avoid disputes and maximise the amount you receive in payment. We can help you spot what’s missing, and make sure you follow the procedures and timelines that are specified in your contract.
Case Study: How We Enforced A Final Account
What do you do, as a subcontractor, when the main contractor reneges on a final account agreement? That was the position our client found themselves in. They turned to us for advice.
We engineered a legal approach that put the focus onto the risks facing the main contractor. When we brought this to the attention of the contractor’s senior management, they required their in-house QS team to pay our client the final account as originally agreed.
Because we were able to resolve matters through emails and letters, our client’s costs were significantly lower than had they gone down the adjudication route. And we corresponded in a way that maintained the relationship between our client and the contractor.
Contra-Charges
If one party incurs costs because of another party’s actions or omissions, it may decide to offset those costs by deducting some money from what it owes them. These deductions are known as contra-charges.
The party claiming a contra-charge needs to prove two things on the balance of probabilities:
- The other party breached a contractual obligation
- That breach caused it a loss
That’s not all. Usually, the claiming party will also have to prove that it took steps to keep its losses to a reasonable amount. Courts and lawyers refer to this obligation as ‘mitigating loss’.
If you have been threatened with a contra-charge deduction, it’s essential to take expert legal advice at an early stage. We can advise you on the strength of your position and the evidence you need to gather if you’re going to succeed in robustly defending the claim.
Case Study: Tiptoeing Our Client To Full Payment
There are payments disputes. And then there are payment disputes that escalate and threaten to escalate some more. Our client was locked in one of those.
When the main contractor alleged our client’s works were defective, our client left the site. But when we reviewed the situation, we quickly saw that our client had made some errors in the way they had left. They had effectively abandoned the works. That exposed them to financial risk under the contract.
Despite this, we not only succeeded in defending our client’s position. We even managed to secure full payment for the sums they were due.
Altion Law are specialists in advising and representing parties on commercial construction contracts, claims and disputes.
For a confidential and free discussion, call us today on 01908 414990. Alternatively, email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.
