Demand Letter:

A demand letter is a formal written communication sent by one party to another, requesting payment or other specific action to resolve a dispute or claim. In construction, a demand letter may be sent by a contractor to a client for non-payment, or by a client to a contractor for unfinished or defective work. The letter typically includes a summary of the issue, the amount owed or the action required, and a deadline for response or compliance. The purpose of a demand letter is to formally assert the sender’s rights and expectations, provide notice of the potential consequences of non-compliance, and create a record of the attempt to resolve the matter before pursuing legal action. A well-crafted demand letter can be an effective tool for encouraging the recipient to take the necessary steps to settle the dispute and avoid further escalation.