To get paid sometimes you have to
CROSS THE LINE Late last year I had a client that was owed nearly a million dollars in variations. The client had told him that all variation claims were NOT to be added into the monthly invoices and ‘they would be sorted out at the end’. Needless to say, he was nearing the end of a large contract and had a seven figure amount owing which had not yet even been claimed. He was now terrified of coming forward and insisting on payment for the additional work. He was scared to cross the line from passive to proactive. It took a lot of convincing but he eventually agreed to consolidate a large claim the next month which contained all contract work done PLUS all the additional work. This was well over a million dollars. His company had never made this kind of claim to the client before, and they had done several large projects together. He met with the client and put the claim on the table and said ‘This is what we will be serving on you tomorrow’.
20 | Aussie Painters Network
Did the client terminate the contract? Did the client explode in a rage? Did the client unleash an army of lawyers to argue the point? Did planet earth suddenly vanish leaving my client floating in space? The answer is of course no. Guess what? He got paid the next day. Not all he was claiming mind you, but a large part of it. And the reason he did not get all he was claiming was because he had not claimed for the work when it had been one. If the matter had gone to adjudication it is almost certain that the full value of works would have been found payable. There is the old saying about FEAR: It is only False Expectations Appearing Real. That is, the contractor assumed that making the full claim would have a host of disastrous consequences. But this is rarely the case. Most of the time the proactive making of a claim will take you over that line from passive to proactive. If the money is fairly owing,
the non payer will have a hard time making its case and so will be open to a payment resolution.
There are four steps that you need to follow to address this situation. Get the Documents together Carefully assemble all contract works invoices, site instructions, variation orders, key emails. Also do a full project reconciliation so that a final figure matches up with your documentation and that you have a clear explanation of the amount owed. Remember to allow for credits issued, retentions held, and payments made. Ask for Payment In whatever manner is stipulated in your contract, simply serve this claim on the client via at least two methods: express post, email, fax, courier and so on. If applicable, make the claim under the Security of Payment Act as it applies in your state.
