Terms and Conditions

5.1 Payment Default

An invoice becomes overdue immediately after the agreed payment date stated on the invoice or contract.

Failure to pay constitutes a material breach of contract.

The Company reserves the right to suspend all works immediately without notice if payment becomes overdue.

5.2 Commercial & Industrial Clients

In accordance with the Late Payment of Commercial Debts (Interest) Act 1998, the Company reserves the right to charge statutory interest and compensation.

Statutory Interest Rate

Interest will be charged at:

8% above the Bank of England base rate

Interest accrues daily from the day after the due date until payment is received in full.

Calculation Method

Interest is calculated as:

Debt × (Base Rate + 8%) ÷ 365 × Number of Days Overdue

Example:

Invoice: £2,000
Base rate: 5%
Statutory rate: 13%
Days overdue: 45

£2,000 × 13% = £260 annual interest
£260 ÷ 365 = £0.71 per day
£0.71 × 45 = £31.95 interest owed

Interest continues accruing daily.

Fixed Statutory Compensation

• £40 (debts under £1,000)

• £70 (£1,000–£9,999)

• £100 (£10,000+)

Applied per overdue invoice.

5.3 Contractual Surcharge

In addition to statutory interest, the Company reserves the right to apply:

• A 5% administration surcharge on overdue balances
  OR

• A contractual daily interest rate where clearly stated on the invoice

Whichever amount is greater and legally enforceable.

5.4 Anti-Delay / Partial Dispute Clause

Clients may not withhold full payment due to minor disputes.

If any part of an invoice is disputed:

• The undisputed portion must be paid immediately

• Interest will apply to unpaid balances

• Raising minor disputes to delay payment constitutes breach of contract

5.5 Director Personal Guarantee (For Limited Companies)

Where the Client is a limited company, the Company reserves the right to request a Personal Guarantee from a Director.

If unpaid, the Director may be held personally liable for the outstanding balance, interest, and recovery costs.

5.6 Credit Checks & Reporting

The Company reserves the right to:

• Perform credit checks on commercial clients

• Report late payments to credit reference agencies

• Share debt information with enforcement agencies

5.7 Recovery Costs

The Client agrees to pay all costs incurred in recovering unpaid sums including:

• Debt collection agency fees

• Solicitor fees

• Court fees

• Statutory demand costs

• High Court Enforcement Officer costs

• Administrative recovery charges

These costs will be added to the outstanding balance.

5.8 Domestic (Consumer) Clients

For domestic contracts:

• Interest may be charged at 8% above Bank of England base rate

• Calculated daily

• From the day after payment becomes overdue

The Company reserves the right to:

• Suspend works

• Withhold certification

• Initiate County Court proceedings

5.9 Retention of Certification

No certificates (EIC, EICR, Building Control notification, compliance certificates) will be issued until full payment is received.

5.10 Right to Remove Goods

Where legally permitted, the Company reserves the right to enter the premises to recover unpaid materials or equipment supplied.

5.11 Escalation Procedure

If payment is not received:

Day 1–7: Reminder
Day 7–14: Interest applied
Day 14+: Final notice
After 21 days: Legal recovery / Statutory Demand

No further notice required before enforcement.