Get Paid Quicker
Does your company install as well as manufacture?
When the Mills Selig team works with Manufacturing NI and its members, we like to understand what we can do from a legal perspective to make business better for you; to get underneath and over the practical issues that really grind your gears.
We know that a recurring problem for Manufacturing NI members is payment. Payment-related issues will include:
- Not being paid;
- Not knowing why you haven’t been paid;
- Being ignored about payment;
- Not knowing when you will be paid;
- Not knowing how much you will eventually be paid; and
- Knowing that if you really want to go nuclear to get your money, it is going to take a serious amount of time and money to pay lawyers, go through the courts and potentially not even win.
It has become clear to us that while many of you have extensive legal rights in relation to payment, members are not aware of these rights or they are not using them.
For many manufacturers, even though it might not be written in your contracts, your contracts already silently include the following rights and remedies as a matter of law:
- If there’s a dispute between the parties about a contract, either party to the contract can send the dispute to an expert in the field and the expert must then issue a binding decision within around 4 weeks – if monies are owed by one party to another as a result, they get paid usually within 5 or 6 weeks from the start of this process;
- You have a right to get paid what you’ve invoiced (guaranteed) unless, before the final date for payment, your client tells you in detail what you’re getting paid so that you understand why you’re not getting what you’ve asked for. And, if the client doesn’t notify you of the lesser amount and why before the final date for payment, you must be paid the full amount you invoiced for – no further questions asked; and
- A right to stop work/installation/delivery under a contract if you’ve invoiced a sum and not been told why you aren’t being paid.
Which manufacturers have the benefit of this solution
If your company installs items in buildings or structures, the above rights are legally included in all your contracts. The relative piece of legislation is called the Construction Contracts Order, but the name should not mislead you. The legislation clearly applies to manufacturing contracts which also provide for the installation of the manufactured product.
So, if you install as well as manufacture, and if you haven’t been paid despite issuing an invoice, it is highly likely that there is a “quick win” way to get your money within 6 weeks. If this is something that is of interest to you, please do not hesitate to call Adrian Kerr of Mills Selig Solicitors on 028 9024 3878.
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