Someone who's reviewed 7,000 construction contracts warns that project owners often withhold final payments by using poorly documented variations or threatening liquidated damages. Keep meticulous records of all paperwork and contractual obligations to protect yourself and get paid.
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The final payment in construction is like the big one, right? You know, we've done over 7,000 contract reviews and managed over £30 billion, and the same play seems to happen over time, which is if there's any issues that go on in a project or you've not done anything contractually well, you've not got your variations in properly, what they'll do is they'll offset it against your final payment. And that's the big one. They'll threaten you with liquidate damages, they threaten you with all of this sort of stuff, and it's that final payment where you lose out. And oftentimes you're struggling, they're definitely struggling because they're looking to save costs. That final payment is where it all comes down to. So if you've got all your paperwork in a row, when that final payment comes around, you should get paid. But if you're not, they're looking to not pay people on projects so they can save money. At the end of every construction project, the costs have blown out. Let's be real. So if they want to save money, that's how they do it.