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We are a small stair company that works as a subcontractor on very large jobs in NYC that is constantly chasing money.

We are a small stair company that works as a subcontractor on very large jobs in NYC. We do our best to submit the pencil reqs accurately and on time but if there is an issue or disagreement about payment it gets bounced out and cannot be re-submitted until the following month. It takes a lot of time and effort to constantly chase money from these contractors. When it does get through we usually don't see the money for at least 45 days, sometimes longer. Just looking for the best way to handle this.

3 replies

Jun 17, 2020

I don't have much experience with managing payment applications and making sure change orders are accounted for, but I think these resources might be useful to you: (1) Construction Payment Applications | FAQs, Guide, and Forms; and (2) Change Order Form — Free Template Download and Best Practices. It might not solve all of your issues, but tightening up the pay app and change order processes should help make sure you're doing everything you can to ensure you're paid on time. With that being said, if you're being slow paid, there are some tools available to help speed up payments.

Tools for speeding up payments

For one, sending a simple (but formal) invoice reminder can help to prod the customer into paying what's owed. If only some portion of your invoice remains unpaid (like a disputed change order) - simply re-invoicing those amounts after receiving partial payment might be a good step. If the customer refuses to approve payment, then turning up the heat might be in order. Sending a Notice of Intent to Lien is a powerful message. Typically, a Notice of Intent is sent to the customer, the GC, and to the owner, but sending it to other related parties might be beneficial too. When a Notice of Intent to Lien is sent to parties beyond just your customer - that will put pressure on your customer to pay what's owed. Plus, without that notice, it's possible that others on the job aren't even aware of the payment issue. Further, threatening legal action against your customer could be useful, too. More on that here: Construction Demand Letters – How To Write One That Gets You Paid.

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Jun 13, 2023

okay sir

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Jun 13, 2023

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