As a supplier in Washington. What is the first step to take to make sure a tribal job will be paid.
1 reply
Mar 30, 2020
The first step to ensuring payment is putting the agreement into writing. Even if the contract or purchase order is simple, it's important to get everything written down from the get-go and to have that documentation signed for everyone involved. What's more, there should be a clear process for change orders and additional supplies.
Another important step is to send preliminary notice to the other higher-tiered project participants. This will let them know you're providing work to the job, it will establish an early line of communication, and it will make for a more transparent and collaborative project.
As you may know, mechanics lien rights won't be available for construction projects on Native American land. So, keep in mind that usual payment recovery tools may not be available. But, it's possible that the GC on the project was required to submit a payment bond to protect sub-tier participants - so, discussing that with higher tiers to see if a bond or some other form of payment security is present might be a good idea. Even if there isn't some form of security present on the project, it might be worthwhile to seek out additional security from a customer - like a personal guarantee or a promissory note.
Finally, keep in mind that pursuing a lawsuit could still be an option, too. Plus, sending a debt to collections could be an option too if you're hired by someone other than the tribe or a member of the tribe.