3 Ways to Ensure Prompt Payment
When a client fails to pay you on time or in full, your cash revenue slows down. Our Miami contractor attorneys understand the frustration contractors feel when having to fight for payment after work has been completed. Today, we’ll discuss the three ways to ensure prompt payment.
Perfect Your Contract
Establish a contract that takes action at set intervals and terms. There might be a phrase in your contract that states that you will only be paid when (and if) something else is satisfied. Explore your contract with an attorney and guarantee that the wording of your contract seeks your best interest. A solid contract is a critical part of ensuring prompt payment.
Do Your Homework
When possible, be selective about who you do business with. Feel free to perform background checks on prospective clients. This will eliminate clients that could be potential risks. After you run the background check, look for claims or judgments that may have been set by other vendors or contractors.
Use a Lien
Besides collection agencies, statutory liens are another tactic used to collect outstanding payments. For example, a mechanic’s lien protects general contractors and subcontractors involved in construction projects. With a mechanics’ lien, if the project files for bankruptcy, you will be paid before any other creditors. For more information on a mechanics’ lien, see one of our previous articles.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.