The Construction Demand Letter For Payment is a critical document used in the Philippine construction industry when payments for completed work, services, or materials become overdue. This document serves as a formal demand for payment and is often a prerequisite before initiating legal action under Philippine law. It should be used when informal payment requests have been unsuccessful and there is a need to escalate the matter while maintaining professional relationships. The letter typically includes project details, payment history, specific amounts owed, and deadline for payment, while referencing relevant contract terms and Philippine construction regulations. It's essential to draft this document carefully as it may later serve as evidence in legal proceedings and demonstrates the sender's attempt to resolve payment issues amicably before pursuing legal remedies.
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1. Sender's Details: Complete business name, address, and contact information of the party sending the demand
2. Date: Current date of the demand letter
3. Recipient's Details: Complete name, title, and address of the recipient/debtor
4. Subject Line: Clear indication that this is a formal demand for payment regarding the specific construction project
5. Project Reference: Details of the construction project including project name, location, and contract reference numbers
6. Payment Details: Specific amount owed, including a breakdown if necessary, and the due dates of the original payments
7. Demand Statement: Clear and firm statement demanding payment, including the total amount and deadline for payment
8. Legal Basis: Reference to relevant contract terms and legal rights for demanding payment
9. Consequences: Statement of potential legal actions if payment is not received by the specified deadline
10. Closing: Professional closing with contact information for payment arrangements
1. Previous Communications: Reference to prior payment requests or relevant communications, used when there has been a history of payment requests
2. Disputed Items: Address any disputed charges or quality issues that have been raised, used when there are contested elements of the payment
3. Payment History: Summary of partial payments received and remaining balance, used when there have been previous partial payments
4. Interest Calculation: Details of accrued interest on overdue amounts, used when charging interest on late payments
5. Lien Rights: Notice of intention to exercise lien rights, used when applicable under Philippine law for construction projects
1. Invoice Copies: Copies of all relevant unpaid invoices
2. Contract Excerpts: Relevant sections of the construction contract regarding payment terms
3. Payment Schedule: Original agreed payment schedule showing due dates and amounts
4. Work Completion Certificate: Documentation proving completion of work or relevant milestones
5. Previous Correspondence: Copies of previous payment requests or relevant communications
6. Progress Reports: Documentation of work progress and completion status
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate
Infrastructure
Commercial Development
Residential Development
Industrial Development
Government Construction
Mining
Energy
Healthcare Facilities
Educational Facilities
Retail Development
Relevant Teams
Legal
Finance
Accounts Receivable
Operations
Project Management
Contract Administration
Collections
Construction Operations
Procurement
Executive Management
Relevant Roles
Project Manager
Construction Manager
Contract Administrator
Finance Director
Chief Financial Officer
Accounts Receivable Manager
Legal Counsel
Construction Site Supervisor
Procurement Manager
Operations Director
Managing Director
Company Owner
Project Accountant
Collection Specialist
Construction Project Coordinator
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