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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8/10/2020 01:54:25 am
Thank you for the wonderful article Paul. I've been reading your blogs to better understand the construction management industry.
21/10/2020 10:50:07 am
This is some really good information about construction management. I liked that you said about how it would be smart to consider looking into what the contractor's payment schedule is like. It does seem like that would make a huge difference in how you handle any remodeling projects on your property. I would like to be able to work with the contractor on a payment plan.
20/11/2020 06:38:14 pm
Thanks for sharing this post is very nice and useful post.
30/11/2020 09:07:56 pm
You can optimize the cost estimate and payment schedule section of your construction contracts to make sure that you get paid on time and in full.
You make a great point about making sure that you have contracts in written documents for the project. That makes a lot of sense considering there are a lot of zoning regulations in each project. I'll have to hire a construction crew that knows all of the legal codes for San Antonio.
19/3/2021 08:17:18 pm
The simplicity of your presentation is highly-motivating for learning. Please keep it up for your teeming followers.
23/3/2021 10:32:34 pm
The facts that have been discussed here are really important. Thank you so much for sharing a great post.
10/4/2021 02:57:41 am
I agree that not company can work free nor should they. People need to pay a company for honest work. Even if they mess up, paying them for the things they did right is still fair.
15/5/2021 06:27:50 pm
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4/6/2021 05:18:42 pm
You made a good point when you shared that you need to carefully select your client so you won't have to deal with late payments. It is great to make sure that there is a service that can help monitor the project so there will no theft or destruction. I would like to think if a company is working on utility construction, it should hire a reliable service that can help monitor the project so it won't be getting late payment.
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Copyright 2016 - The attached articles cannot be reproduced for commercial purposes without the consent of the author.
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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