We are having a lot of payment problems. The main reason is the
length of time taken by the consulting engineers and client’s quantity
surveyors in agreeing the prices for our variations. The builders tell me they
are doing their best to help us, but the professional team are always very
busy. When they do eventually look at our variations, they always reduce our
prices and demand loads of nitty gritty evidence. When we supply it, they
demand even more. This is happening on many of our jobs, and the total sum of
money held back is causing us difficulties at the bank. We have phoned and
pleaded, written letters, but nothing changes. What can we do?
The first step is to look at your sub-contract conditions and check
the procedures regarding valuation of variations. If you are a domestic
sub-contractor (as I believe you are) you will usually find no mention of the
client’s quantity surveyor or consulting engineer. In fact, the valuation of
variations is a matter purely between you and the builder. You should remind your builder of this basic
fact of contractual life. Tell him you are not interested in the professional
team’s problems and whether they are too busy.
If your variations have been properly
instructed in writing by the duly authorised representative of the builder, or
an architect’s instruction passed down to you via the builder, then you should
submit your prices as quickly as possible, certainly in the very next interim
application. If possible, provide back up detail at the same time. If not,
follow up as quickly as you can. Once
you have submitted your details, keep up the pressure. Insist on knowing the
precise build up of every interim payment, and how much has been allowed for each
variation. Do not accept “on account”
lump sums which leave you thousands short without any explanation. Be prepared to make a nuisance of yourself,
by telephone, fax or whatever it takes. Believe me, nice subbies get
ignored. If the amounts withheld are
big enough, consider taking advice on your chances with an adjudicator under
the construction act.
If you want more detailed advice, buy
“The Streetwise Subbie” second edition, extensively revised and updated.
John Russell
Contracts and Training Consultant
Email:
swsubbie@globalnet.co.uk
Web
site: www.jrconsultant.co.uk