nowing when money is due to be paid out is crucial to the well being and smooth running of any contract. For this reason the contract has to be discussed in detail right at the start of a project and this will include both dispute resolution and payment of invoices when presented.
A key element of trust between building contractor and client is that the former will only invoice anticipated and agreed levels so that the client can manage its cashflow and equally that the client will pay all sums due when demanded so that the contractor can pay employees and bills for materials. Any breakdown in this process will injure a project severely. For example the client must not use withholding payment of an authorised invoice as an unauthorised weapon with which to make some personal point of principle because “they sign the cheques”. All that this will do is kill the goodwill of the contractor.
Every client needs to understand that a failure to pay a contractor monies that are properly charged when they are due will, as sure as night follows day, lead to a potentially irreparable breakdown of the relationship between contractor and client and cause serious damage to a project. When this happens the sums of money or other issues which are supposedly in dispute are likely to appear as a pin prick when compared to the agonies that will result from the loss of trust that failure to pay will engender.
Knowing when the money is due to be paid out is intended to help both client and contractor to keep the project properly oiled so that everything runs smoothly and to budget. Any variations to this can be addressed through the channels of communication established for this purpose.
