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What To Do When a Client Delays Payment

Payment delays can be one of the most frustrating and challenging aspects of working in the construction industry. As a contractor, it is essential to maintain a steady cash flow and receive timely payments for completed work. No one has time to waste chasing down outstanding invoice dues.

Read on to learn more about what you can do if you’re faced with a client who delays payment on one of your Florida builds.

Chasing Down Past-Due Payments

Missed payments can cause financial strain and disrupt your business operations. They can also lead to major arguments with your client and potentially land you in litigation. Here are some ways to secure the money you’re owed for the agreed-upon work.

Refer to your construction agreement - Review your contract and payment terms and conditions. What’s the agreed-upon payment schedule, due dates and any late payment penalties or interest provisions? Then, review your invoices to ensure they are accurate, clear and properly submitted according to the contractual requirements.

Follow up with the client - Reach out to the client with a professional reminder about the past-due payment. Refer them to the contract so they understand the provisions. Keep thorough records of all communication related to the payment delay. You may also consider escalating the issue within the client’s organization.

Consider legal action - If attempts to resolve the payment delay prove unsuccessful, consulting with a construction litigation attorney may be necessary. They can evaluate your situation, advise you on your legal rights and options, and represent your interests if legal action becomes necessary. One such path you may be advised to pursue is to file a mechanic’s lien to help you recover payment for your work.

Dealing with a client who delays payment is frustrating, but unfortunately, it’s an all-too-common scenario GCs face here in Miami. If you’re struggling to collect payments in a timely manner, please get in touch with our team at Quintana Law, PA.

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