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Demand Letter To Contractor Template for England and Wales

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Key Requirements PROMPT example:

Demand Letter To Contractor

"I need to draft a Demand Letter to Contractor regarding their failure to complete renovation works on our commercial property by the agreed deadline of March 15, 2025, with outstanding works valued at £75,000 and resulting in business disruption costs."

Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























Clauses















Relevant Industries
Relevant Teams
Relevant Roles
Industries

Construction Act 1996: Housing Grants, Construction and Regeneration Act - Primary legislation governing construction contracts and payment terms in the UK

Late Payment of Commercial Debts (Interest) Act 1998: Legislation allowing creditors to claim interest on late commercial payments

Limitation Act 1980: Sets statutory time limits for bringing different types of legal claims

Supply of Goods and Services Act 1982: Legislation governing the quality and standards of goods and services provided

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract

Contract Law Principles: Common law principles governing formation, terms, and breach of contracts

Law of Obligations: Common law principles regarding legal duties and obligations between parties

Damages and Remedies Principles: Legal principles governing compensation and other remedies for breach of contract

JCT Terms: Standard form contracts published by the Joint Contracts Tribunal for construction industry

NEC Terms: New Engineering Contract terms - alternative standard form contracts for construction projects

Construction Industry Payment Protocols: Industry-specific guidelines and practices for payment terms and disputes

Adjudication Procedures: Statutory right to refer disputes to adjudication in construction contracts

CDM Regulations 2015: Construction (Design and Management) Regulations governing safety and management of construction projects

Building Regulations: Statutory requirements for construction work and building standards

Professional Standards: Industry codes of practice and professional conduct requirements

Civil Procedure Rules: Pre-action protocols and procedural requirements for legal proceedings

Alternative Dispute Resolution: Requirements and options for resolving disputes outside of court proceedings

Evidence Requirements: Standards and types of evidence needed to support claims in potential legal proceedings

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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