The Basics of Getting Paid in Construction
If you’ve been in the construction industry for a while, you’ve probably experienced having clients who refuse to pay for the services you provide. This can be one of the most frustrating things that can happen as a contractor, especially after you and your team put in a lot of hours to get the job done efficiently and professionally.
In this post, we will provide an overview of how to get paid in construction. We will also provide you with some of the best practices to ensure that you and your team are paid on time and for the full amount.
Navigating the Payment Process
More than any other industry, the construction payment process can be complex. With the
average transaction taking at least 83 days, getting paid can often be a stressfully long wait.
These long wait times usually occur due to the amount of financial risk involved in
construction, as well as the many parties that are involved in any transaction.
As a contractor, you depend on the property owner, lender, and other contractors to be on the same page. When any of these parties fail to meet their obligations, things can get messy. Perhaps the property owner depended on a loan to pay for the project, but their lender backed out unexpectedly. Perhaps there was a misunderstanding between the owner and the general contractor of the project in which all the work wasn’t completed leading to a dispute.
These types of challenges tend to come up frequently in the construction business, which is why it is important to be prepared for delays and disputes any time you book a project. Knowing how to navigate mechanics liens, bond claims, contracts, notices, pay applications, and change orders is essential if you plan to get paid for your hard work.
If you haven’t been paid in months for a project you completed on time within the terms of
the contract you established with the client, then you might want to look into filing a
mechanics lien. Filing a lien for payment is the process by which a lien is placed on the
property until the construction payment is made.
Mechanics liens can be a great way to escalate a payment that hasn’t been made. Property owners are incentivized to pay because they don’t want a mechanics lien showing up on their property when it comes time to sell.
If you’re a contractor who needs assistance getting paid for a job you did and still haven’t received payment for, look no further than Nationwide Notice. Our professionals have years of experience dealing with liens, contracts, missed payment notices, and much more. Getting paid in construction is a complex process, and attorneys are expensive. You shouldn’t have to worry about not getting the money you deserve for your job. Contact Nationwide Notice today to see how we can help your business get paid on time. We specialize in working with construction companies for things like change order forms, general contractor payments, lien release, and all types of construction payments.