The Request For Payment Letter (Construction) is a critical document in the Saudi Arabian construction industry, used to formally request payment for completed construction work or achieved project milestones. It is typically issued by contractors, subcontractors, or construction companies to project owners or main contractors. The document is essential in the payment application process and must comply with Saudi Arabian regulations, including the Government Tenders and Procurement Law and Sharia principles. This letter should be accompanied by comprehensive supporting documentation, including progress reports, completion certificates, and detailed cost breakdowns. It's particularly important in Saudi Arabia where payment terms and documentation requirements are strictly regulated, and proper documentation is crucial for ensuring timely payment processing.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the recipient
2. Project Identification: Clear identification of the project, contract reference number, and relevant dates
3. Payment Request Details: Specific amount requested, payment milestone or period, and reference to contract terms
4. Work Progress Summary: Brief description of completed work relating to this payment request
5. Previous Payments Status: Summary of previous payments received and outstanding amounts
6. Bank Details: Company's bank account information for payment transfer
7. Certification Statement: Declaration that work has been completed according to specifications
8. Closing and Signature: Professional closing, name and position of authorized signatory
1. Variation Orders Reference: Include when payment request includes approved variation orders
2. Delay Notification: Include when there are relevant delays affecting the payment schedule
3. Retention Release Request: Include when requesting release of retention money
4. Dispute Reference: Include when payment request relates to resolved disputes
5. Materials on Site: Include when claiming payment for materials delivered but not yet installed
1. Payment Calculation Sheet: Detailed breakdown of payment amount including percentages, deductions, and VAT
2. Work Progress Report: Detailed report of completed works with photographs and measurements
3. Bill of Quantities Update: Updated BOQ showing progress and quantities completed
4. Quality Certificates: Relevant quality certificates for completed work and materials
5. Variation Orders Documentation: Copies of approved variation orders if applicable
6. Progress Photographs: Visual documentation of completed work
7. Consultant Certificates: Relevant certificates from project consultants confirming work completion
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Infrastructure Development
Real Estate Development
Civil Engineering
Industrial Construction
Commercial Construction
Residential Development
Public Works
Oil and Gas Construction
Mining Construction
Relevant Teams
Project Management
Finance
Commercial
Contract Administration
Construction Operations
Accounts Receivable
Legal
Project Controls
Claims Management
Relevant Roles
Project Manager
Construction Manager
Quantity Surveyor
Contract Administrator
Finance Manager
Commercial Manager
Project Director
Construction Site Manager
Chief Financial Officer
Account Manager
Project Control Manager
Claims Manager
Construction Cost Manager
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