2. Validly serving the Payment Claim on the Respondent (the person you’re recovering progress payments from).
3. After receiving the Payment Claim, the Respondent may then choose to:
a. pay your claimed amount in full, or
b. propose to pay a lesser amount, in which case, they should reply with a Payment Schedule.
Payment Schedule: Quick Facts
If the Respondent contests the claimed amount in your Payment Claim, they need to serve a Payment Schedule, which should state the amount they believe they owe and that they propose to pay. This amount is called the “scheduled amount.”
Validity of the Payment Schedule
To determine whether the Payment Schedule is valid, check if the following are present:
When Should Respondent Send Me Their Payment Schedule?
If the Respondent has no intention of paying the claimed amount in full by the due date in the construction contract, he is required to send (“serve”) a Payment Schedule within 10 business days from receipt of the Payment Claim.
Sometimes, construction contracts provide for a lesser amount of time for the Respondent to serve the Payment Schedule. If that’s the case, the timeframe provided in the construction contract applies.
How Should Respondent Serve the Payment Schedule?
The Respondent may validly serve the Payment Schedule at your ordinary place of business, through any of the following means:
What if Respondent Doesn’t Serve a Payment Schedule?
Respondent then becomes liable to pay the entire claimed amount in the Payment Claim, on the due date indicated in your construction contract.
If the due date rolls around and Respondent still doesn’t pay, you have the option of: