NUMBER ONE – Mom & Pop Independent Material Providers across the country all seem to say the same thing, “we do not like being the bank for projects”, referring to their extending lines of credit for materials averaging 42% of a project’s cost and then...
NUMBER TWO – If you deliver projects for state government you know about WBE’s (Women-owned Business Enterprises) and MBE’s (Minority-owned Business Enterprises). There are strict requirements on government funded construction projects that WBE’s & MBE’s are...
NUMBER THREE – You can’t talk about payment conundrums without discussing the surety bond that assures a contractor will perform and pay their bills. Sureties are commonly involved with construction for government entities; especially larger entities and larger...
NUMBER FOUR – You must hand it to some companies. It does take panache to propose to pay companies less than what they are owed simply because you know they need the working capital. Payment-chain flaws that cause chronically long accounts receivable and...
NUMBER FIVE – More than 70% of construction work placed in the US is done by companies with less than 4 employees. These companies are mostly our subcontractors. Most do not have the strong financial wherewithal that the GC does. The materials they procure...
NUMBER SIX – Everyone in construction expects some weather delays, but they are very difficult to accurately plan for, so bad weather is almost always underestimated. Payment issues are exactly the same. Pretty much everyone we talk to – at all links in the...
