When you’re not getting paid in construction, when is the problem not about payment?

Don’t confuse the two…

Question: When you’re not getting paid, when is the problem not about payment?

Answer: When it’s a dispute about valuation.

The two things are interconnected but they are not the same!

They are different problems that require different solutions.

Reasons for under valuation in construction

There are a wide range of reasons why you might not be getting paid properly, but the most common are the under valuation of your account including variations and valuation of the final account.

There are several steps that you can take to avoid under valuation.

First, know your contract: It is important to always check the terms and conditions of your contract and be fully aware of specification of the works, payment terms, variations and extensions of time clauses and adjudication clauses.

Secondly, keep in touch with the Contractor or Client: Always give regular progress updates to Contractors and inform them of any factors that may give rise to variations delays etc. This can be achieved by regular agreed meetings and effective management.

Thirdly, before carrying out any additional work, ensure that you receive written instructions from the Contractor or Client and do not wait until the end of the project to try and get values agreed.

Keep everything: You can never keep too many records. Respond effectively to any verbal requests and ensure that you take pictures of the site, retain email conversations and, importantly, document any reasons for delayed progress.

Please don’t stand for late or underpayment.

Take action!

Remember that problems never resolve themselves.

If your works are not being properly valued, take remedial action early. The sooner you tackle the problem the less impact it is likely to cause, and the sooner you get the money the better.

It’s an old adage but you need to get your money out of the tin before it’s empty!

Try going to the top: If discussions at site level are not addressing a certain issue, then go to someone senior in the Contractor or Client’s business. Senior management is often able to take a broader perspective and this wider view can often help resolve disputes before they escalate.

If you do encounter problems that are not getting fixed, discussing things at an early stage with one of our expert legal advisers can be cheaper and simpler than trying to resolve an escalated dispute further down the line.

Take action to safeguard your business from the catastrophic impact of reduced, late, or non-payment in 2016.

If you don’t then it could cost you your business!

Unscrupulous Contractors use every trick in the book, to reduce and delay payments. Specialist Contractor’s efforts to avoid or rectify this problem often come too late in the process.

Don’t be one of the casualties, take action now.

Download “How To Get Paid” for free right now, and put an end to reduced, late and non-payment!

Whatever level your business is at, and whatever your specialisation I want to encourage you to experience and enjoy a better more profitable, less stressful way.


I hope you enjoyed my Wise Up Wednesday email and that it gave you some food for thought, and please don’t hesitate to grab your Free Report at “How To Get Paid” and if you need any help with any of your business problems pick up the phone and give us a call on 01773 712116.

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