A Demand Letter to Contractor is typically used when there has been a significant breach of contract, such as non-completion of works, defective workmanship, or non-payment of subcontractors. The document serves as a final warning before pursuing legal remedies and is a crucial step in dispute resolution under English and Welsh law. It should clearly state the issues, demands, and consequences of non-compliance, while maintaining a professional tone. This type of letter often forms part of the documentary evidence in construction disputes and can demonstrate reasonable attempts to resolve issues before litigation.
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1. Recipient Details: Full name, address, and reference details of the contractor
2. Contract Reference: Specific details of the contract in question, including date and reference numbers
3. Issue Description: Clear statement of the breach or default under the contract
4. Amount Demanded: Specific sum being demanded, including any interest or penalties
5. Legal Basis: Reference to relevant contract terms or legislation supporting the demand
6. Payment Terms: Deadline for payment and acceptable payment methods
7. Consequences: Clear statement of intended actions if demand is not met
1. Previous Correspondence: Reference to prior communications when there have been previous attempts to resolve the issue
2. Interest Calculation: Breakdown of interest charges when claiming statutory or contractual interest
3. Dispute Resolution Options: Reference to available Alternative Dispute Resolution methods when required by contract or as a demonstration of reasonableness
1. Contract Copy: Copy of relevant contract or agreement
2. Payment History: Schedule of payments made and outstanding
3. Correspondence Log: Record of relevant previous communications
4. Supporting Evidence: Photos, reports, or other documentation supporting the claim
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