By VOLOCO LLP, Sep 28 2019 02:49PM
Following on from our previous article looking at payment processes in Construction Contracts, we are now going to delve into the details a bit more, starting with the Application for Payment.
WHAT IS AN APPLICATION FOR PAYMENT?
An application for payment is an assessment of the works due to be completed up to the next payment due date. It is issued by the party that carried out the works to the party paying for the works. Generally, the application is issued a set number of days in advance of the payment due date.
Whether or not there is a requirement for an application for payment to be issued within the (sub)contract, it is a good idea to get into the habit of issuing them. As noted in the previous article, if the payer fails to issue their payment notice at the correct time, the application for payment will become the default payment notice and the sum detailed within becomes due on the final date for payment.