ᐅ Invoice Verification, Handling Defects, and Retention Payments
Created on: 25 Oct 2020 12:35
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allstar83A
allstar8325 Oct 2020 12:35Hello everyone,
We are about to make the first payments to the general contractor soon.
I would like to benefit from your experience regarding what to watch out for during invoice verification, possible defects, and retention of payments in general.
Perhaps there are also things you would handle differently now. I understand that overpayment should be avoided, of course. My main concern is how to manage situations when, for example, some work is not satisfactory to you.
Have you ever simply withheld an amount with prior notice? Did you retain the statutory retention amount / security deposit? Did you formally set deadlines, or did you always try to resolve issues through communication first?
Thank you very much for your insights!
We are about to make the first payments to the general contractor soon.
I would like to benefit from your experience regarding what to watch out for during invoice verification, possible defects, and retention of payments in general.
Perhaps there are also things you would handle differently now. I understand that overpayment should be avoided, of course. My main concern is how to manage situations when, for example, some work is not satisfactory to you.
Have you ever simply withheld an amount with prior notice? Did you retain the statutory retention amount / security deposit? Did you formally set deadlines, or did you always try to resolve issues through communication first?
Thank you very much for your insights!
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allstar8325 Oct 2020 15:14Did everything go smoothly for you? Received the invoice, got the service, paid, and that was it?
allstar83 schrieb:
We will soon have the first payments due for the general contractor.
I would like to benefit from your experience regarding what to watch out for when reviewing invoices, possible defects, and retention in general. I would stay relaxed about progress payments, as I don’t see a reason for precautionary defect retentions there. You can include "progress payment – without acceptance effect" in the payment reference of the transfer.
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https://www.linkedin.com/company/bauen-jetzt/
allstar83 schrieb:
Did you, for example, simply reduce an amount with prior notice? No
allstar83 schrieb:
Did you withhold the legal retention? No
allstar83 schrieb:
Did you formally set deadlines, or did you always try to pursue all communicative solutions? No, yes
If we had done anything like that, the general contractor would not have continued construction. They wouldn’t have gone along with such “games.”
We were on site every day and communicated with the tradespeople. In conversations with them, we also learned that they were legally well prepared. But we didn’t really have any major disasters during the house construction. At least I can’t remember any.
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hampshire26 Oct 2020 00:56Pay for the services received and report any defects. At this stage of construction, there is no reason to escalate the issue.