Debt Collection in Construction
Debt collection in construction often comes with complexity and high stakes. With multiple parties involved, such as suppliers, contractors, and subcontractors, payment delays are common. Furthermore, disputes can quickly arise due to differing contracts, responsibilities, and regulations. While projects move forward, outstanding invoices can place significant pressure on your cash flow.
At Bierens, we understand the legal and operational intricacies of the construction sector. Our specialists assist construction businesses in recovering unpaid invoices effectively and strategically, while navigating industry-specific rules and preserving working relationships on ongoing projects.
With experience since 1952 and an in-house team of over 115 international lawyers and debt collection specialists, we help ensure you receive what you are rightfully entitled to.
Payment behaviour in construction
Business relations evolve around trust and develop over the years. Whether you are an electrician, bricklayer, plumber or carpenter, disagreements may occur if for example your contractor refuses to pay you.
Based on our experience, we know that creating sustainable relations is extremely important. Written and formal procedures are not always followed, documented or signed, as relationships are based on trust and verbal commitment. When there is a debt collection case, many agreements must be construed. This is often based on the available documentation and what the client remembers. Therefore, collecting your payment may be a difficult process. Despite these challenges, our lawyers can help you retrieve your unpaid invoice.
About debt collection in construction
Debt collection cases in construction may be caused by various reasons. Typically, disputes arise from a discussion about the quality or the amount of time spent. Clients may claim that there are defects in the delivery of a construction project or that specific tasks, though necessary, were not agreed upon beforehand.
Another common vulnerability found within the construction sector lies in the tendency of parties to work without having formal (written) documentation. Furthermore, the construction sector is prone to a hierarchical business culture, increasing the risk of unpaid invoices and construction disputes further down in the supply chain.
In some cases, large companies can use their position to delay payment to benefit their own financial situation. For example, as a subcontractor you may be dependent on your main contractor to be paid. Similarly, if your company supplies raw materials, and a payment issue arises, you may be last in line to get paid. Whatever the reason may be, the result is often the same: the client refuses to pay.
Debt collection prevention in construction
Our construction lawyers are specialised in various areas of construction law. If you have a late payment in construction or a payment dispute, our lawyers can ensure that you have the right precautions in place. Whether you need assistance in requesting an advanced payment, a late payment schedule or a payment notice, our lawyers can help you.
Causes of disputes in construction
In the debt collection cases that we have worked on in the past, we have seen all different kinds of disputes. Common construction disputes may include administering construction contracts, specifically the failure of planning and executing the contract. It is also possible that your employer or contractor fails to understand or comply with the contractual obligations.
In the construction sector, it is less common that your contractor has no financial resources. In most cases there is an underlying cause, which means that many collections in the construction industry are a disputed claim. Regardless of the causes of disputes in the construction industry, our construction dispute lawyers can help you as well.
Challenges in the construction sector
The challenge with many companies within the construction sector is that some agreements are also a matter of perception. For instance, if your debtor refuses to pay because they believe that the delivered work or materials are of poor quality, we can help you with this.
Our lawyers will investigate the cause. How was the quality of the materials defined in the contractual agreements? Does it concern a small part of the delivery or the whole delivery? Is the complaint justified? Other factors will also be considered.
How can we help you?
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Our working method – No Cure No Pay
During the extrajudicial phase, we work based on No Cure No Pay. We believe it is important to try to solve the case during this phase, without court intervention. You will only have to pay €185 for administrative costs. Should legal action be necessary, then we can help you perform a credit check and analyse your debtor’s financial status. We will discuss the costs with you and will only start working on your case after receiving your permission.
International debt collection in construction
If your contractor is located abroad, you may also encounter an unpaid invoice. Our team of international experts can get your debtor to pay. Whether you have a late payment in construction or an international construction dispute, our lawyers have the knowledge and experience with both national and international debt collection in the construction industry.
Advantages when hiring our debt collection lawyers
We understand the payment behaviour of companies in the construction sector. We know how such agreements should work in theory and in practice. Therefore, we believe that it is important to provide practical advice that is as close to normal business operations as possible. For instance, we look at your operations and see how we can build in checks and balances. In addition, we also ensure that these checks and balances are implemented and executed in the right way.
Our specialists for debt collection in construction
For years, Bierens has helped many companies across different industries. Our team of debt collection lawyers also specialise in international debt collection. Whether you have a debt collection case in your own country or abroad, our lawyers have the expertise and knowledge to help you.
Do you have a contractor who is withholding payment or refuses to pay you for your overtime work? Is your contractor not meeting their contractual obligations? Or do you have any other issues relating to a late payment or a construction dispute?
Send us your invoice right away. Our specialists will immediately start working on your case.
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