The Construction Demand Letter is a critical document used in New Zealand's construction industry when seeking payment for completed work or services. This formal document, governed by the Construction Contracts Act 2002 and other relevant New Zealand legislation, serves as a final demand before initiating legal proceedings. It is typically issued when standard invoicing and payment processes have failed to secure payment. The letter must include specific details about the construction project, outstanding amounts, payment history, and clear payment deadlines. A well-drafted Construction Demand Letter often includes supporting documentation such as contracts, invoices, and project records, and must comply with statutory requirements for payment claims in the construction industry.
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1. Recipient Details: Full legal name and address of the recipient (debtor)
2. Project Reference: Clear identification of the construction project and contract details
3. Payment Claim Details: Specific details of the outstanding payment, including invoice numbers, dates, and amounts
4. Legal Basis: Reference to relevant sections of the Construction Contracts Act 2002 and contract terms
5. Payment History: Brief summary of previous payments and current outstanding amount
6. Formal Demand: Clear statement of demand for payment, including the total amount claimed
7. Payment Timeline: Specific deadline for payment and payment method details
8. Consequences: Clear statement of intended legal action if payment is not received by the deadline
1. Previous Correspondence: Reference to prior payment requests and communications - include when there has been significant prior correspondence
2. Dispute History: Summary of any disputed items and their resolution status - include when there have been disputed payments
3. Interest Calculation: Breakdown of interest charges on overdue amounts - include when claiming interest on overdue payments
4. Multiple Project References: Details of multiple projects or contracts if demand covers several projects - include when claim relates to multiple projects
1. Payment Schedule: Detailed breakdown of all outstanding payments and calculations
2. Copy of Contract: Relevant excerpts or complete copy of the construction contract
3. Invoice Copies: Copies of all relevant invoices and payment claims
4. Project Documentation: Relevant site records, completion certificates, or other supporting documents
5. Correspondence Log: Chronological record of relevant communications regarding payment
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Commercial Building
Residential Construction
Industrial Construction
Civil Engineering
Architecture
Property Management
Engineering Services
Relevant Teams
Legal
Finance
Operations
Commercial
Accounts Receivable
Credit Control
Project Management
Contract Administration
Construction Operations
Risk Management
Relevant Roles
Construction Manager
Project Manager
Contract Administrator
Financial Controller
Account Manager
Construction Site Manager
Quantity Surveyor
Commercial Manager
Legal Counsel
Credit Controller
Chief Financial Officer
Operations Manager
Collections Manager
Construction Director
Finance Manager
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