Tips to Help Construction Companies and Contractors Get Paid on Time
As business people, we can all appreciate the comfort and confidence of getting paid in a timely fashion. On the inverse, nothing robs your confidence in a client faster than the uncertainty of not getting paid. For contractors, the importance of timely payment is heightened by the need to purchase materials and pay subcontractors. Not getting paid on time can paralyze their businesses.
While a mechanic’s lien, a maneuver that a Jacksonville construction lawyer can help you execute, is often used to ensure payment from a site owner, there are less drastic means. In business, committing to the little things often leads to the greatest success. Here are a few tips that all construction companies and contractors should follow to get paid on time:
Verify That a Site Owner Can Pay You
This sounds basic but it’s always good to verify if a site owner can actually pay for your services. Contact the funding organization and ensure that money is in place for the project. You can also simply ask to review the loan documents.
Set Clear Payment Terms
When having a contract produced for your upcoming project, specify clear terms for when payments should be received as well as any penalties that can be incurred for late payments. Doing this early on sets clear expectations and holds the site owner accountable for payment.
Send Invoices Promptly
It’s easy to fall behind with invoicing when you’re running a construction site. However, few actions are as important or set a more professional tone than sending invoices at the prescribed times. It sends a message to the site owner that they are dealing with a company with high standards. It also puts the ball in their court in terms of payment. A clear paper trail of invoices sent can help you if you ever have issues receiving payment.
Be Ready to File a Lawsuit
No one wants it to come down to this, but if you are waiting well beyond the predetermined time period to receive payment and you have sent multiple notifications, it’s time to take legal action. A Jacksonville construction litigation attorney can gather the details of your case and help you file a lawsuit against the site owner.
To request a consultation with a reputable Jacksonville construction attorney, please call us today at 904.425.5030 or submit our contact request form.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.