Don’t get stuck with an outstanding invoice. Take steps early and often to ensure your Miami construction firm gets paid for its work on time and in full. Here are some ways you can reduce the likelihood of having to track down past-due payments.
● Establish clear expectations - Be upfront about payment terms, timelines and consequences for late payment, including late payment fees.
● Get everything in writing - Verbal agreements won’t stand up in court. All contracts should be written and signed. This includes any change orders or modifications once work is underway.
● Require a retainer prior to beginning work - Insist on a down payment before you begin work of any kind.
● Invoice promptly and according to the payment schedule - If you want to get paid on time, be sure to send your invoice on time.
● Set shorter payment terms - Instead of net 30, consider setting payment terms of net 15 days.
● Require credit applications - New clients carry risk. Vet them properly by assessing their financial capabilities.
Late payments are unfortunately the norm in the construction industry, but you don’t have to be part of the trend. Take proactive steps to prevent payment delays by strengthening your contract agreements and enforcing payment penalties. If needed, don’t hesitate to pursue a mechanic’s lien to take further legal action. At Quintana Law, PA, we focus on construction law and ensure our South Florida clients’ interests are protected every step of the way. Contact us today to schedule a free consultation to discuss your case.