What To Do When a Client Doesn't Make a Payment According to the Schedule

Timely payment is a contractual obligation clients agree to when they commit to a commercial construction project. Failing to make payments according to the agreed-upon schedule is frustrating and can cause financial challenges for contractors.

If you find yourself in such a situation, it's important to address the issue promptly and professionally. In this post, we will discuss key steps to take when a client doesn't make a payment as per the schedule so you can best navigate the situation and ensure you receive the payments you are owed.

Steps to Recover Delayed Payments

It’s imperative that you get paid for your work on time and according to schedule. If a client misses a scheduled payment, don’t delay in following up. Here’s what else to do.

● Review the payment schedule - Before reaching out to the client, double-check the payment schedule and terms in your construction agreement. That way when you politely and professionally contact the client, you can point them to the exact wording in the contract. Sometimes clients just need a reminder - nothing more, nothing less.

● Have a conversation with the client - If a gentle reminder gets you nowhere, pick up the phone or have a face-to-face chat with the client. Listen to hear what’s going on from their perspective. It’s possible they may be withholding payment because they’re upset about an issue.

● Consider possible solutions - Depending on the issue, evaluate if there are reasonable solutions that address the client’s concerns. Professionalism goes a long way in retaining good clients and earning referrals from them.

● Determine if you need to take further action - If good-faith attempts fail, it may be time to consider other options, including engaging a construction law attorney. They can help you assess your options for collections and determine if pursuing a mechanic’s lien is the best course of action for your situation.

Securing timely payment for your work is essential to the successful operation of your Florida construction business. If you find yourself up against a client who just won’t pay, contact us at Quintana Law, PA to discuss your options.