Reconcile the supply account before responding
Reconcile the gross account, payments and credits before responding, and assess any counterclaim separately.
Updated: . By Jack Butler-Kettle, Construction Claims Consultant.
Why it matters
Reconcile the gross account, payments and credits before responding, and assess any counterclaim separately. An unpaid invoice and a remedial allegation have different evidence and may follow different payment or procedural rules. An unexplained deduction can create a new dispute.
How to do it
- Match each invoice to the operative order, delivery or work record.
- Reconcile payments and credits and record unresolved differences.
- Set out any counterclaim by event, basis, cost and evidence.
- Have the representative confirm the payment and notice position before approving a response or deduction.
Example
Illustrative example. The scenario and figures are invented.
The facts
A subcontractor receives a £24,000 supply account although £15,000 has already been paid. It also alleges £6,500 of remedial costs.
What happens
- The gross account and £15,000 payment are reconciled, leaving a £9,000 demand to assess.
- The remedial allegation is assessed separately, with £5,000 provisionally supported on the stated evidence.
- The representative checks the agreement, payment position and any right to deduct before a response is authorised.
The outcome
The account and counterclaim remain separate and evidenced. No automatic £4,000 net payment or admission follows from the provisional figures.
To have this done for you, see our Supplier and Sub-subcontractor Claims & Defence service.