As was said earlier, payment problems are common in the construction industry. This is because of how much money is travelling between parties in the construction industry. A total of $1 trillion goes around in the construction industry. So this guide is meant to help those who are worried about getting their next payment in the construction industry.
Communicate More Effectively
One of the most important things to know when you want to avoid construction payment problems is to make sure you’re communicating effectively. This lets you stay in touch with the clients that owe you. It isn’t just direct communication that matters either.
Your contract also weighs heavily on how difficult it is to get a payment out of a client. Make sure that the provisions present in your contract are sufficient to cover things that can happen when construction actually begins. This is especially true if there is more than a single party involved in the construction as things can get messy if proper provisions aren’t made.
Take Advantage of NOIs
A notice of intent to Lien is something that is considered a final resort in the construction industry. These basically tell your client that their time is almost up and they have to send payment right now. If your client still refuses to send over payment then you already have an advantage if the case goes to court.
The main reason why this is important is that it gives you the leverage you need to get your payment from your client. Not only does it tell them that they’re going to get hit by a lien if they don’t pay, it also tells them that you’re not afraid to go to court.
Have Someone Else Assisting You
Payments are something that you’re always going to want to come in regularly and on time. However, sometimes you’re going to be put in situations where you’re forced to get the payment from your clients yourself. This can be difficult if you’re simply handling the task yourself. There are several ways to get this done right.
One solution is to get a lawyer from a staffing agency like Engineering Debt to assist in drafting your contract with the client. This minimizes the chance that they’re going to pay late or not pay at all. Another solution is to hire a team like Levelset if they refuse to pay you despite a great contract. Levelset is an expert at getting results and helping contractors, and merchandisers get paid what they’re rightfully owed.
With the construction industry being notorious for non-paying clients, it only makes sense that you sharpen your wit and skills to make sure that you’re getting paid. Having a few helping hands also helps with construction payment problems.