Demolition contractors UK wide need to ensure good cash flow if they are to run their business effectively. The same can be said for any business in the construction industry, or any industry for that matter. However, when you consider that payments are typically made long after costs are incurred, you see how crucial cash flow truly is.
A lot of construction contractors are guilty of following poor payment practices, which can cause a lot of damage further down the supply chain. For this reason, it is important for demolition contractors, and all other businesses, to be aware of how to avoid late payments, and how to manage them if they do occur. Firstly, ask yourself a couple of key questions. 1) Does the contract have a specific clause the deals with how much you will be paid, how you will be paid, and when you will be paid? 2) Do you thoroughly understand the payment terms of the contracts you have entered into? All contracts must comply with the Housing Grants Construction and Regeneration Act 1996, and it is vital for there to be a payment clause. There are two types of payment mechanisms – either you will make an application for payment to the payer, or the paying partner will notify you of what will be paid for and when. You must understand all terms outlined, from Final Date for Payment to Due Date, so that you know how to act if you aren’t paid on time.
At Construction Link Limited, we can help demolition contractors UK wide to know their rights and obligations by helping them to understand their contract. Our unique online platform is a service for both demolition contractors and procurement professionals, bringing you together for seamless procurement. If you would like to find out more, all you need to do is head to https://c-link.com.