Not following the terms of the contract in relation to payment protocols is still an unnecessary cause of dispute.

Both sides should know their obligations and responsibilities.

Cash is king – if you’ve carried out the work you’re entitled to be paid for it, don’t jeopardise this by failing to follow the payment protocol you’ve signed up to.

In general:

• Ensure that the payment dates are stated in the contract & ensure that the contract states what happens after the final payment date in the schedule.
• Check the contract to make sure that retention dates are based on your works not the dates of the project.
• Ensure that your own internal payment procedures can be aligned with any proposed payment schedule.

To Payees:

• If the contract requires, issue an interim application
• If no Payment Notice is issued, issue a default Payment Notice

To Payers:

• Issue a Payment Notice (even if it’s a “NIL” notice)
• If you intend to pay less make sure you issue a Payless Notice
• Pay the amount due by the final date for payment
• If a default payment notice is issued, issue a Payless notice if necessary.

Note: Calling a document a notice or application does not make it valid, read the contract what does it need to contain to be valid.