Menu
Home>Levelset Community>Legal Help>Can I change the verbage on my new contracts in regards to payment policies?

Can I change the verbage on my new contracts in regards to payment policies?

CaliforniaBankruptcyCash FlowCollectionsConstruction ContractCredit ManagementPay When Paid

Can I require payment up front for materials on my contract jobs? How do I protect myself in this environment where our economy is plummeting and I am still getting work? I am a Subcontractor and standard procedure is "we get paid after the G.C. gets paid" but we are supposed to buy all of the materials and furnish labor before we can invoice. What if the Bank pulls the funding for the project?

1 reply

May 14, 2020
I agree with Peter, a contract with clear enforceable provision, including a scope of values (SOV). This is usually the breakdown of the scope on the project with assigned billing values. This is where you want to make sure you have a line item in the SOV for "mobilization" or "initial payment" that is agreed upon, giving you the subcontractor an opportunity to bill for some of the upfront material and labor before you start your project. I am also available to help as a number of our programs help solve cash flow issues. If you would like to discuss more or I can help please email me at: sburgener@fkconstructionfunding.com
1 person found this helpful
Helpful

Add your answer or comment

Not the answer you were looking for? Check out other Bankruptcy topics or ask your own question