Out of all the businesses that exist today, the construction business is one of the most, if not the most difficult business types to get paid on time. Reasons for this can be attributed to a myriad of factors, but the bottom-line is that unless a subcontractor or material supplier takes all of the necessary precautions and follows all of the required steps prior to the commencement of work or the supply of material, the possibility of not getting paid on time or worse yet, not getting paid at all, increases exponentially. Smaller contractors that perform commercial work, especially those who are new to commercial contracting are most vulnerable. The promise of that big payday from a larger subcontract appears to be attractive and alluring at the onset of a project, but when monies aren’t paid after a month or two or three, the harsh realization sets in that a monetary loss could occur. Oftentimes, even though the first payment that is due on a subcontract from a general contractor becomes past-due, the subcontractor will be coaxed into continuing their work, believing that payment will be made eventually if their work continues. Meanwhile, in reality, the general contractor has already billed and may have already been paid by the owner for the in-process work completed by the subcontractor and has either spent the monies intended for payment to the subcontractor or simply is using those monies to operate their own business.
For this reason, it is imperative a subcontractor performs the necessary due-diligence:
- Properly investigate the General Contractor’s Credit Worthiness and learn whether any adversarial actions have been pursued against them including any lawsuits, payment disputes, liens, bond claims, etc.
- As a material supplier, properly investigate the Subcontractor’s Credit Worthiness in addition to that of the General Contractor and learn whether any adversarial actions have been pursued against them including any lawsuits, payment disputes, liens, bond claims, etc.
- You comply with the requirements of the Ohio Mechanic’s Lien Law. In order to avail yourself to the rights and remedies as provided by this valuable tool, you must comply with the specific requirements as contained in in the verbiage of the various sections of the Ohio Mechanic’s Lien Law.
Getting paid for your labor and materials can be difficult, but CreditPro Financial Services, LLC can help you to avoid the possibility of non-payment. CreditPro Financial Services, LLC can assist you in credit investigation prior to beginning work on a project, service of the proper documentation at the onset of a project to protect your lien rights, and also the collection of your monies if payment is not received in a timely manner. Give us a call at 216-402-9988 for a no-cost confidential analysis or visit our website, creditprofinancial.com