Extending payment terms is not without consequence and we must be informed on these risks in order to make a sound decision.
Tag: Payment
Industry Watch – Payment Protection – Why the US and Other Leading Nations Need Payment Protection Legislation and What Procurement Can Do in the Meantime.
Throughout the world legislative actions are transforming the way the construction industry behaves. These legislations are not only protecting trade contractors from unfair practices, they are protecting Owners too.
Surprisingly, some of the world’s most sophisticated markets have yet to enact similar protections. In those parts of the world, certain common and persistent practices continue to put the supply chain and Owners at risk.
Best Practices – Retainage – How Contractors are Avoiding Retainage and How it Hurts Owners.
This had the net effect of holding back the Contractor’s entire fee as a guarantee that they would complete the work.
Industry Watch – The Builder’s Lien Act – How Manitoba is Taking on the topic of Prompt Payment by Modernizing the Builder’s Lien Act.
One of the strategies for maximizing the value of capital is to extend payment terms.
Best Practices – Application for Payment -Why You Should Never Pay A Contractor Without Doing This.
This process occurs before the contractor presents an invoice.
Best Practices – Payment Management – How You Can Manage Construction Payments to Minimize Exposure and Risk.
In other words, they made payments to the contractor without knowing what these payments were for.
Industry Watch – Payment Retention – How the Construction Industry is Acting to Reduce the Impact of Contractor Insolvency
Since the fall of Carillion, the construction industry has been actively seeking a change.
Project Bank Accounts – New Project Accounting Contractor’s will Hate but Will Protect them from Insolvency!
Using PBA’s will require significant adjustments and all parties will need to rethink how they operate.
Best Practices – Advanced Payments in Construction – When Should You Allow Them?
You should bear that in mind and recognize that your payment is always a form of reimbursement.