A lot of things go into running a small construction business. You end up wearing several hats: salesperson, estimator, bookkeeper, laborer and project manager. With so many responsibilities, it’s easy to overlook things, such as building and maintaining good credit.
A pay-when-paid (or pay-if-paid) contractual provision exists in almost every construction contract that comes across my desk, and it probably exists in almost every contract that you sign. So let’s define what it is. A pay-when-paid provision is a contract provision that shifts the risk of nonpayment from one party to another. As an example, […]
A contractor’s final payment affidavit is a critical document. Without filing it, a contractor will not be able to enforce its lien rights. The affidavit has to list all lienholders under the contractor’s control and note whether those lienholders have been paid in full, and if not, the amount still due.