As a contractor, getting paid on time is crucial for your business to thrive. Therefore, it is crucial to abide by construction management practices that help ensure you receive the payment you deserve. By following these strategies, you can minimize payment issues and secure your hard-earned money.
1. Get Change Orders in Writing: Change orders are virtually unavoidable on most projects. To avoid payment headaches, always get change orders approved in writing before performing extra work. Make sure to document any changes to the original contract, including costs, schedule, and scope changes, and get written approval from the client. Having written records of approved change orders keeps everyone on the same page and prevents payment disputes down the road. When you can show that changes were agreed upon, you have a better chance of getting paid for the extra work you’ve done.
2. Negotiate for Protection: When you’re negotiating contracts, don’t forget to look out for yourself. Include protective provisions that can help you if payment problems arise. Consider including a “stop work” clause, which allows you to pause the project if payment issues crop up, giving you leverage to resolve the situation. Also, negotiate fair payment terms with clear milestones and due dates. By setting expectations upfront, you reduce the risk of payment delays or disagreements. Consult with professionals who know construction law to ensure your contract provisions are fair, enforceable, and give you the protection you need.
3. Keep Track and Communicate: Good documentation is essential to prove your work and get paid. Keep accurate records of your daily activities, progress reports, and even take photos to support your claims. Submit invoices promptly, ensuring they are clear, itemized, and match the agreed payment schedule. Late or confusing invoices can lead to payment delays or misunderstandings. Regularly communicate with the project owner or client, addressing any payment concerns or questions as they occur. By staying on top of payment matters and maintaining open communication, you increase the chances of getting paid.
Getting paid as a contractor is crucial for your business’s success. By following these construction management practices, you’ll be better positioned to receive timely payment. Remember to seek professional advice when needed to review your contracts and ensure compliance with construction laws. Doing so will help minimize payment disputes, keep your cash flow healthy, and build a thriving construction business.
DISCLAIMER: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.
READY LEGAL 