Are you a construction contractor waiting for money?
Late payments are every contractor’s nightmare. Late payments disrupt cash-flow and result in the contractor being unable to pay their suppliers, subcontractors and even employees. This could result in the loss of payment discounts (so items cost more) and stricter payment terms with suppliers in the future, which could mean that suppliers require earlier payment or even payment in advance, which negatively impacts the contractor’s cash-flow further. Of course non-payment of suppliers, subcontractors and employees often disrupts work on construction projects resulting in delays, and it creates mistrust between the parties impacted. Nobody wants to have to wait for their money.
What contractors must do to ensure they are paid on time
It’s therefore essential that contractors ensure they are paid on time. This can be achieved by implementing the following:
It's critical contractors are paid on time
Late payments and non-payment is probably the biggest cause of construction contractors going bankrupt. Being paid on time is critical to every business. It’s critical to claim all completed work in accordance with the construction contract and submit invoices on time. Ensure that payments are received and follow up late payments immediately. Regrettably many construction contractors don’t get the basics of invoicing and getting paid right. No company can afford to work for free.
How do you ensure that you are paid on time?
Do late payments impact your business?
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The opinions expressed in the attached articles are those of the writer. It should be noted that projects are varied and different laws and restrictions apply which depend on the location of the contractor and the project. It's important that the reader uses the supplied information taking cognisance of their particular circumstances. The writer assumes no responsibility or liability for any loss of any kind arising from the reader using the information or advice contained herein.
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