What's the lack/shortage of Funding?

I think that the shortage of fund must not be a cause to hold justified payments to the suppliers/contractors. The buyers should ensure that procurement should only be made when funds are earmarked. The client should be asked to release funds in their own business interests for continuity of relationship.

I can answer according Contracting Company : 

It is better to send a notification letter to the client about the situation including attention that the process of work would be affected .

and if no response comes from the client then It is better to stop the work ( of course ) according the Contract conditions until the situation solved ...

Thanks for very tricky question.

Purchase order is an obligatory document and as such when the supplier delivers the supplies, the organization/ Procurement department must pay to the supplier. 

It may happen, the client (user department) does not have enough fund in the particular budget line. In such a case, the procurement department in consultation with user department shall arrange funding from some other departments for bridging only and when the user department gets funding, the accounting entry shall be reversed. Normally, this is as usual practice. By doing so, the supplier gets the payment on time and the organization also keeps it reputation.  

It's a problem which has dogged the Government's term in office, but is particularly serious now that the economy is on the turn and there is a market seeking to purchase homes, something which wasn't the case in 2011.

The problem is most acute in the main cities, but particularly in Dublin. It is also a complex one.

Not only are building costs too high, taxes on construction are deemed excessive and banks are not lending to developers.

While there is no shortage of sites with planning permission, these issues - particularly the lack of funding - are hampering development.

And it now emerges that key land banks cannot be developed due to a lack of essential infrastructure.

Road access, and a lack of water treatment services, are the stumbling blocks.

I believe that everything must be predicted and mentioned in contact.

In case we had shortage in fund, It doesn't happen suddenly, it will be appeared step by step when we are going forward, so in different meetings or reports we can explain the status.

Also we can send official letters in right time to get the fund.

Agreed with Mr.RAmi and Mr.Nadeem

Usually, the clients hide behind the poor quality of work for delaying the payments. The contractor shall keep his workforce motivated to maintain the required standard of quality in the work performed. In the absence of such constraints the contractor shall be asked to pay in his own best interests and dealt with according to applicable clauses of contract if he fails to do so.

Reassure the client that all works are guaranteed and any extra works that the client might need in the future would be offered at a small discount rate. And all emergency works would be the same, at an agreed call out fee.

Thanks for the invitation

Agree with my colleagues