Applications for Payments - Read the Rules!

The correct delivery of payment applications is something that, whilst a project is running smoothly, is often at the back of everyone’s mind, so long as the QS ends up with a copy of it.

However, if a project starts to run in to problems or the payer is having cashflow difficulties, they will often justify making no payment for the months work because the application hadn’t been delivered either by the correct method or on time.

There are many methods of payment application submission that can be written into a contract, for example, that it is sent to a particular email address or that it is in a particular format and no matter how clear the application may be, if it is not delivered correctly and on time then, depending on the wording of the contract, the payer can act as if no application has been submitted at all leaving you out of pocket.

Given that a large number of companies live from month to month with very little reserves, something as simple as failing to submit an application correctly could have dire consequences for any contractors cash flow.

For any assistance on ensuring your applications are in line with your contractual obligations, contact Giles Associates to discuss how we can help you get paid.