Non-Payment and Risk-Shifting Pose Challenges for Construction Companies

“Learning how to implement a strong receivables management program is crucial when it comes to getting paid, and getting paid on time,” says attorney Nate Budde, editorial director of The Lien & Credit Journal. “In the construction world, this means being aware of potential risk-shifting mechanisms in contracts, and knowing the ins and outs of the security rights that are available.” According to Budde, payment delays result from scope of work issues, inspection problems, change order disputes, and contract clauses. Contractual language and provisions to force risk down the payment chain can help reduce delays or non-payment, Budde says.

 

http://blog.fundinggates.com/2014/05/non-payment-risk-shifting-construction-sector/