1. The payment claim must be in writing
This one is a definite must! Whether the contract is in writing, verbal, or a mixture of both, a phone call will not be sufficient, no matter how extensive or formal it is. Emails are safe! When in doubt, write it out.
2. It should clearly relate to the construction contract
Your payment claim must contain sufficient details to identify the construction contract that the payment relates to.
Make sure the information provided in the payment claim is enough to identify the specific construction contract for which you are claiming payment, especially if you have multiple projects with your client.
Often, identifying the particular work site is sufficient to identify the specific contract.
3. Outline work done and when it was done
Identify the construction work and the relevant period to which the payment relates.
In large projects, you may have arranged scheduled progress payments: the payment claim should identify the period you are claiming payment for. In smaller jobs, identifying the work done and when it was done is generally sufficient.
In any case, make sure you are not vague in your description of the works and identify when the works were done.
4. Include the amount & date for payment
Clearly state the amount claimed and the date it is due for payment.
The amount indicated in the payment claim should be an exact amount you are owed, rather than a ballpark figure.
The date specified should also be set to a specific day to minimise any confusion. Check your contract or T&Cs to see if you have already fixed a standard payment period for payment claims.
If you haven’t established anything in particular, the default period under the Act is 20 working days. You’ll need to give your client 20 working days to pay.
5. Show how the amount was calculated
Indicate clearly how you reached the sum owed in the claim.
There should be a clear description of the works carried out and the method used to calculate the amount payable. In smaller jobs, the calculation may be very simple: the bathroom floor has been completed, or you have completed 60% of the works required for the kitchen renovation.
6. State that the claim is made under the Act
One line – Do not forget to include this sentence in full:
“This is a Payment Claim made under the Construction Contracts Act 2002”.
7. It must be accompanied by a written notice commonly known as Form 1:
This notice describes the process for responding to the payment claim and explains the consequences of not responding or not paying. It also explains how to respond to it. This notice may change from time to time. Make sure you always use the latest version.
Finally, check the Guides and Resources page our website for more information. If you want to go straight to the source, you can read more in the official legislation website.
