As a contractor, you know payment claims are part of the job. They can be a pain in the arse part of the job, but they have to be done all the same. Luckily, that’s where your QS steps in to make sure everything’s paid in time. But do you know what happens behind the scenes?
Here’s what you might not know about how the process works and how to make sure your payments go smoothly.
1. The Payment Schedule and QS Process
Payment schedules are typically agreed on before you ever set foot onsite. You agree on a schedule with your client of when you’ll submit your next claim and specify the work to be completed by that date.
Basically, the schedule tells the client when you’re going to be looking for payment It should align with a cash flow analysis, keeping your client informed about payment timing and justification.
Your QS starts the process by preparing a payment application, which can take a few days. A site visit is essential to assess progress, materials used, and any variations. Are you entitled to those variations? Have they been agreed upon? These details are reviewed before submission to the PQS or architect, depending on the project.
2. Timelines and Follow-Ups
Once the payment application is submitted, the PQS or client has a timeline for responding to their assessment. There’s no need to let this part of the process go on for weeks. If you haven’t heard back within five days, follow up to keep things moving. You want to make sure the assessment doesn’t stall and disrupt your cash flow.
3. Proving Your Payment Claim
You might not be happy with what the PQS shares in their assessment. That’s when you need proof to back up your claim. Saying you’re entitled to money isn’t enough you need to have solid records showing why. This includes:
- Photographs and videos of completed work
- Receipts for materials and deposits
- Documentation of variations or extras
For example, if you need a 50% deposit for windows, tell your client upfront to avoid confusion. Proper documentation helps resolve disputes before they get out of hand and justifies your payment claim.
4. Handling Pay Less Notices and Deductions
It’s not uncommon for the PQS to issue a pay less notice, disputing extras or deducting costs. This back-and-forth is part of the process but you need clear communication and thorough records to get through it. Staying on top of these discussions and having a strong contractual understanding will make sure your payment doesn’t end up being delayed.
Conclusion
The payment application process takes time, but staying organised, proactive, and aware of what’s in your contract makes all the difference. By keeping records, following up on assessments, and managing variations carefully, you can make sure that your payment claims go through without unnecessary delays.
If you need help managing your payment claims or have any questions, contact us today. At Carroll Estimating, our team are here to support you from tender bid to final account.