Boot Camp: Late Payment Issues: Construction Contracts

The Boot Camp section of the Update will give a brief overview of a different subject in each issue. The subjects will be relevant to restructurings or corporate insolvencies. It is intended to provide a non-technical overview of some of the practical issues clients might have to consider sufficient to explain the basic law and what it might mean for you in practice.

In this month's update Andrew Weston and John Crowley of the Construction and Engineering team describe some ways in which it is possible to protect a business against late payment of debts due to it.

As the country slides towards a "triple dip" recession and businesses struggle with cash flow difficulties, the issue of dealing with late payments for goods and services is a problem for all. The few practical tips mentioned within this article, however, may help manage this risk to give your business an advantage.