Knowledge
What to do if the client doesn't pay?
Late payment is no reason to go to court immediately. First it must be clear what the contract provides and which deadlines have already passed.
Where to start
Check the payment deadline under the invoice and the contract, the proof of the services performed and the correspondence with the client. The dispute often arises not because of the money but because proof of the quantities is missing.
- Payment deadline under the invoice and the contract
- Proof of the services performed
- earlier invoices and payments
- Correspondence with the client
Next steps
Usual practice is a written reminder with a new deadline, followed by a formal demand for payment (Mahnung). Further action depends on the contract terms and on whether you work under VOB/B or under the BGB.
Before you assert a stoppage of work or default interest, you should check whether your contract permits it.
How it works in BauWalker
BauWalker brings together contract, payment plan, invoices, deadlines and correspondence and creates a draft of a letter to the client.
This material is for information and is not legal or tax advice. The specific consequences depend on your contract and the circumstances on the construction site.