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Construction Demand Letter for New Zealand

Construction Demand Letter Template for New Zealand

A formal demand letter used in New Zealand's construction industry to request payment for outstanding construction-related work or services. This document is drafted in accordance with the Construction Contracts Act 2002 and related New Zealand legislation, serving as a crucial step in the debt recovery process for construction projects. It outlines specific payment claims, includes relevant project details, and states clear payment deadlines along with consequences for non-payment. The letter forms an important legal document that may be used in subsequent legal proceedings if payment remains outstanding.

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What is a Construction Demand Letter?

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.

What sections should be included in a Construction Demand Letter?

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

What sections are optional to include in a Construction Demand Letter?

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

What schedules should be included in a Construction Demand Letter?

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

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Ƶ

Document Type

Demand Letter

Cost

Free to use
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

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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