Everyone who works in the construction industry has worked on a project and frustratingly not been paid for their work. We frequently receive calls from contractors, subcontractors, architects and engineers who have not been paid for work on a job and want to sue right away to collect. Not so fast! Here are 7 factors to consider to determine the best path to payment. And it might be just writing off the receivable.
You work hard for your client on a Project. You need to get paid for your services on time. Here are tips for improving your chance of getting paid on time.
1.1 Know your client. There are some firms who might hire you as a consultant who are notorious for not paying consultants on time or at all. Do not work for them. If you are being hired by a developer-created single purpose LLC, that is a red flag and you know payment may be an issue. Ask the hard questions up front about how the project is financed. Include shorter time frames in the payment provisions in your contract and stick with them. On the other hand, if you are working for a Fortune 100 Company, you know that they are solvent but many often have a 60-day payment cycle. Your contract and your expectations should be very different.