Construction payment demand letter

Preparation instructions

Complete the reconciliation schedule on page 3 before drafting the letter. Replace bracketed fields, remove inapplicable optional wording and keep this instruction page in your internal file. The letter requests payment under the identified contract; it does not establish a statutory right or satisfy a prescribed notice procedure.

• Confirm both legal names and the authority of the person sending the letter.
• Check the contract for the billing recipient, notice address, permitted delivery method and any dispute process.
• Reconcile credits and receipts through the stated date. Identify holdback and disputed items rather than adding them twice.
• Attach invoices and a statement of account; send personal or banking details only through an agreed secure channel.
• Use only a supported contractual due date. The requested response date is chosen by the sender, not a legal deadline.
• Obtain separate advice before adding interest, legal costs, lien threats, insolvency allegations or suspension language.

Delivery record

Prepared by and preparation date

Reviewed internally by

Contract notice clause and method

Recipient address verified on

Dispatch date and time

Delivery evidence filename

Follow-up owner and date

Editable letter

[Sender legal name]

[Sender mailing address]

[Sender contact email and telephone]

[Date]

To: [Customer legal name]

Attention: [Authorized contact]

[Contractual notice or billing address]

Re: Payment request for [project address and contract reference]

Our records show an outstanding ledger balance of CAD [amount] as of [reconciliation date] for the invoices listed in the attached statement. Those invoices relate to [brief description of work or materials] under [contract or purchase order and date].

The statement records gross invoices of CAD [amount], credits of CAD [amount] and payments of CAD [amount]. It separately identifies CAD [amount] of retained holdback and CAD [amount] of items you have disputed. We request payment of CAD [amount requested], calculated as explained in the attached statement and supported by [contract payment clause and factual due-date basis].

Please confirm payment status or identify any disagreement by invoice and line item, with the reason and supporting information, by [requested response date]. This is our requested response date, not a statement of a statutory deadline.

If payment has already been sent, please provide its date, amount and remittance reference so we can reconcile the account. Please use [previously agreed payment method or secure instructions] and confirm the intended invoice allocation.

[Optional, if accurate: We remain available to discuss the identified disputed items and request that you clarify your position on the balance not in dispute.]

Sincerely,

[Authorized sender name and position]

[Signature if appropriate]

[Contact details]

Statement accompanying the letter

Project and contract reference

Reconciliation as-of date

Currency CAD; tax included in invoice amounts

Contract clause supporting amount requested

Total ledger balance CAD

Retained holdback already included CAD

Disputed amount already included CAD

Amount requested now CAD and explanation

Excluded interest, fees or unapproved extras

Attachments and follow-up

Before sending, confirm that totals match the accounting system and the letter. Retain the original export, final signed letter and delivery record. Record any response as a new event; do not overwrite the original demand.

Before you act: this document is general information prepared by ArtBuild to help you organise facts and paperwork. It is not legal advice and has not been reviewed by a lawyer for your situation. Rules differ by province and territory and change over time. Check the official source for your project, and for deadlines, liens, court or insolvency steps, speak with a lawyer licensed where the project is located.