The Construction Demand Letter is a critical document in the Australian construction industry's payment recovery process. It is typically used when payment for completed construction work or supplied materials remains outstanding beyond the agreed terms. The document must comply with state-specific Security of Payment legislation and serves as a formal precursor to potential legal proceedings. A Construction Demand Letter should clearly identify the parties, project details, amount claimed, and payment terms, while referencing relevant contract provisions and applicable legislation. It's particularly important in the Australian context where each state has its own security of payment regime, and the letter must align with these jurisdictional requirements to be effective in enforcing payment rights.
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1. Sender and Recipient Details: Full legal names and addresses of both parties, including ABN/ACN for businesses
2. Project Identification: Clear identification of the construction project, including site address and contract reference numbers
3. Amount Claimed: Precise statement of the amount owed, including GST status and any interest calculations
4. Payment History: Brief summary of payments made and outstanding amounts
5. Basis of Claim: Reference to specific contract terms, relevant legislation (e.g., Security of Payment Act), and work completed
6. Payment Terms: Original payment terms and due dates as per the contract
7. Demand Statement: Clear demand for payment with specific deadline and payment method details
8. Consequences of Non-Payment: Statement of intended legal action if payment is not received by the deadline
1. Previous Correspondence: Reference to prior payment requests or relevant communications - include when there has been previous documented attempts to collect
2. Dispute History: Summary of any disputed items and their resolution status - include when there have been specific disputes about the work or payments
3. Interest Calculations: Detailed breakdown of interest calculations - include when claiming interest on overdue amounts
4. Statutory Declaration: Statement confirming completion of work - include when required by contract or beneficial for claim strength
5. Without Prejudice Save as to Costs: Legal protection clause - include when making any concessions or settlement offers
1. Contract Extract: Relevant sections of the construction contract relating to payment terms
2. Payment Claim Documentation: Copies of invoices, payment claims, and any payment schedules
3. Work Completion Evidence: Photos, certificates, or other evidence of work completion
4. Communication Log: Chronological record of relevant communications regarding payment
5. Calculation Schedule: Detailed breakdown of amounts claimed, including any variations or adjustments
Relevant legal definitions
Clauses
Relevant Industries
Construction
Building and Infrastructure
Property Development
Commercial Real Estate
Residential Construction
Industrial Construction
Civil Engineering
Mining Construction
Government Infrastructure
Architectural Services
Relevant Teams
Legal
Finance
Operations
Commercial
Contracts Administration
Project Management
Accounts Receivable
Risk Management
Construction Operations
Procurement
Relevant Roles
Construction Manager
Project Manager
Contract Administrator
Quantity Surveyor
Commercial Manager
Financial Controller
Legal Counsel
Credit Controller
Accounts Receivable Manager
Operations Manager
Site Supervisor
Construction Director
Claims Manager
Risk Manager
Procurement Manager
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