Understanding Contract Notices
Hi, there. Anthony from Contractors Debt Recovery returning to your screen yet again. Today, we’re going to talk about notices, notices under the contract. There are notices of suspension you need to be aware of, how do you do extension of time notices, notices for a change in scope, a whole host of notices under more formal contract. Now the first problem that contractors get themselves into is they don’t know what situation requires a notice and the contract will tell you that. You need to be across that. How many types of notices are there and under which situations do I have to create one and send one to my client.
The other point you need to be aware of is what is the content of these notices. Now a more involved contract will actually itemize what needs to be in the notice. If it’s a suspension notice, what information does your client need in order to consider to contents so they can either approve or reject it. So you need to know what contents have to be in these notices. Finally, you need to know when to send the notice and who to send it to. You need to send it to the correct person or the correct fax number or the correct email address as set out in the contract.
So the reason this is very very important is because so many payment disputes end with the client saying well you never told us or you never told us in time. The contract gives you three business days to tell us if the variation has arisen and you didn’t do that. Or, well you’re suspension notice needs to be rendered to us within two business days of an event occurring and so on. You need to be across what gives rise to the requirement for a notice under your contract. You need to be what has to be on the notice so that the content of each notice. And you need to know where and to whom to send the notice.
So be across those. It’s not too hard. You need to review the contract careful. Be across all the different types and know in advance all those situations that will require you sending a notice to your client. If you can be across that, it sends the message that you understand the contract and it also shuts down a whole area of none payment that might be lurking just to come and sneak up on you in three months’ time. So please be aware. It’s not a minor administrative matter. It’s actually a major thing that will help you get paid a lot faster and a lot more. I’ll see you next time.