You’re a contractor and you’re having a hard time recovering debts owed to you for ongoing or past construction projects. That’s something we regularly deal with. We often represent our construction clients in recovering debts owed to them, negotiating settlements with debtors, and initiating proceedings in the Small Claims Court and the Superior Court of Justice for debt recovery. We’ve had a good deal of experience in dealing with construction and as such we’ve accumulating some top tips for preventing construction contract receivables. These are in no particular order.
1. Always paper, paper, and paper! Make sure that you’ve got a copy of every document with respect to the construction contract. That means invoices, bills, cheque copies, change orders, emails, text messages, and beyond. This helps your lawyer establish your case in court and explain to the judge why you’re owed what you’re claiming.
2. Have a construction lawyer on your side from the get-go. We know that most people like to get lawyers when things go wrong. We suggest otherwise. Get a lawyer on your side from the point you are bidding on a project. That way once you’ve secured the project your lawyer can help you prepare contracts that protect you, advise you on the legalities of the construction project, and help you mitigate your risks.
3. Practice being open and direct with your client. Speak to your client, whether that be an owner, developer, general contractor, sub-contractor, or anyone else in the construction chain, and make clear to them your expectations for the contract. We know getting paid is important to you. So you need to get this message across to the client – and that should be conveyed through the contract and your communications with the client.
And that’s not all. There’s a lot more when it comes to construction law and the like. We’d definitely like to chat more with you about your construction business and advise you on how we can help protect you. Feel free to contact us anytime at firstname.lastname@example.org or +1 (877) 892-7778 to set up your free construction law consultation.