Debt Collection in Construction

Debt collection in the construction industry can be a challenging process. It is important for your business that you are paid on time. Ultimately, you should receive what you are entitled to. As many different parties and agreements are involved between suppliers, contractors and subcontractors, different rules and regulations may apply within the construction industry. Our lawyers have covered several debt collections cases within the construction sector. Have you encountered on of the following issues or anything similar? Then our lawyers have the knowledge and expertise to help you recover your unpaid invoices.

  • Your contractor is withholding payment
  • You have not received interest on your late payment
  • Electricians have not been paid for their overtime work
  • Painters have not received their retention payment
  • The project has been suspended or terminated
  • Your contractor claims to be facing financial difficulties or even bankruptcy
  • Your contractor claims that the delivered materials are damaged
  • Contractual obligations have not been met

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.

Debt collection in construction

Do you have a debt collection in construction? Many debt collection cases in the construction industry arise because there is a discussion about the quality. For example, the client believes that there are defects in the delivery of a construction project. Or because the quality of the building materials is insufficient, meaning that the client refuses to pay. In most cases there is a disputed claim.

Often there is also a lack of formal documentation including long supply chains. The construction sector is prone to a hierarchal business culture, resulting in unpaid invoices and construction disputes. 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.

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?

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 €150 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.

  • We retrieve the payment that you are entitled to
  • No Cure No Pay debt collection
  • Extensive knowledge and experience within the construction sector
  • We can help you with your national and international case
  • We can help you throughout the entire process, from talking to your customer to executing a verdict
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Our specialists

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 payment disputes in construction, late payment or a construction disputes? Send us your invoice right away. Our specialists will immediately start working on your case.

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