THEORY INTO PRACTICE PAYMENT FOR MATERIAL OFF SITE
The FRESH JCT Theory into Practice – Managing a Construction Subcontract suite of template letters and documents.
We have all heard the saying “Cash is King” and it is true of all businesses and industries, so why do so many suppliers and subcontractors in the construction industry enter into JCT, NEC and other Construction Subcontracts with adverse terms of payment.
Much of the UK Construction industry is built on “credit” from a combination of suppliers or subcontractors in the first instance operating under adverse payment terms and then receiving delayed or late payment and an undervaluation of their work.
It does not have to be this way!
The key to improving your cash flow particularly for those with a high material content is for the payment terms to include provision for payment of material off-site.
Provided your argument is both reasoned and realistic the Main Contractors representatives only objection can be that either they are concerned about the security of their payment to you for materials off-site or alternatively they or their client do not have the funds or the cash flow to pay you when you require.
The objection regarding security of payment for material off-site is relatively easily overcome by offering the vesting of materials off site with the use of vesting certificates legally transferring ownership to the person or company paying you.
The process and administration of vesting of material off-site and the issue of the appropriate vesting certification can be relatively complex and requires the use of specific legal documents / certificates.
With professional, confident up front negotiation and an understanding of the provisions within construction sub-contracts it is perfectly possible to negotiate more favourable and realistic terms of payment including payment for material off site.
The objection regarding security of payment for material off-site is relatively easily overcome by offering the vesting of materials off site with the use of vesting certificates legally transferring ownership to the person or company paying you.
The FRESH JCT Payment for Materials Off Site Theory into Practice suite of template letters and documents will:-
- Help you overcome objections to receiving payment for material off site thereby improving your cash flow
- Give you security and peace of mind when you have to pay your suppliers up front for material off site.
IMPROVE YOUR CASH FLOW WITH THE FRESH JCT THEORY INTO PRACTICE PAYMENT FOR MATERIAL OFF-SITE DOCUMENTS & VESTING CERTIFICATES.
The FRESH JCT Payment for Materials Off Site Theory into Practice suite of template letters and documents include :-
- Index of standard documents.
- Improve your cash flow with payment for material off site.
- The correct use of vesting documents.
- Giving vesting certificate for payment for material off site. Suggested vesting certificate to be used when receiving payment for material off site where you are required to vest ownership of the material off site.
- Giving vesting certificate label of ownership. Suggested label of ownership to be affixed to all property / material off site when receiving payment for material off site where you are required to vest the material,
- Receiving vesting certificate for payment of material off site. Suggested vesting certificate to be used when you pay your supplier for material off site.
- Receiving vesting certificate label of ownership. Suggested label of ownership to be affixed to all property / material when you are making a payment to your supplier for material off site when you are requiring the ownership of the material to be vested in your name.