Expert Views - Maximising Contract Entitlements

There is ever increasing pressure to collect cash and maximise contract entitlements in order to deliver profit or even sustain the viability of some businesses. It is now common for business funders to insist on appropriate strategies to recover cash and contract entitlements in consideration of operating cash facilities.

What is your contract entitlement

There are many different contract relationships that deliver a construction/development project. The relationships are likely to include: Developer/Employer and Contractor, Developer/Employer and Consultants, Contractor and Consultants and Contractor and Supply Chain such as Subcontractors and Suppliers of Labour, Plant and Materials.

For any business to have a chance of beating the current market conditions awareness and appropriate action is required to maximise contract entitlements.


All Parties need to be aware as to its contract obligations, how and what it is getting paid for, together with the contract mechanism to recover additional sums generally in respect of the expenditure of additional resources. Such awareness will allow identification and recovery of contract entitlements.

Appropriate Action

All Parties need to have in place appropriate procedures and management structures that provide the opportunity for awareness and recovery of contract entitlements. Failure to properly manage matters will prevent the recovery of contract entitlements and may signal the failure of a business as it has simply not collected its cash and maximised its entitlements.

Resolving a difference of opinion

It is not uncommon for the Parties involved in a contract to have a difference of opinion or dispute contract entitlements or even simply refuse to pay.

In the event that any of the above occurs the difference of opinion or dispute that has arisen may need to be resolved through more forceful negotiations or formal dispute resolution processes such as mediation, adjudication, litigation or arbitration etc.

The right business decision at the right time will without doubt improve cash collection, maximise contract entitlements and support the viability of the business.