Creating a collection policy requires taking a number of different facts, circumstances, and considerations under advisement. And, the most important aspects of a collection policy will vary from business to business in the construction industry.
With that being said, if I were writing a collection policy, these are the 3 factors I think I'd hone in on:
1. How long will customers have before entering a formal collections process?
2. What steps will be taken to collect? (i.e. Filing mechanics liens, sending debts to a collection agency, filing suit)
3. How much of the process will be performed in-house, and when will the collections process be outsourced, to some degree, to a professional service?