1. Getting paid timely. Our contracts routinely require payments to be received within 30 days of completion, but customers generally hold on to payments much longer, thus requiring our company to lean on prior cash flow to support prior projects.
2. Getting paid in full. Constantly, customers attempt to negotiate payments after our work is complete. This can be challenging as we’re not the party holding the funds.
3. Getting paid with ease. As a contractor, we’re constantly having to chase down the money deploying resources to collect the payment due for the services we already provided.
1. Not collecting deductible at beginning of construction projects and trying to collect it at the end of the job. Any problem on the job will be used against you at this time and you probably are not going to get the deductible.
2. Not getting everything in writing, change orders specifically. One of the biggest things we preach to our team is that when a change order is initiated, it is in writing and the entire change order must be collected before the change order is to be done
3. Dealing with mortgage companies. It is a big game that we have gotten pretty good at. On construction projects, we sell the homeowner on how we are going to make this process easier by dealing with their mortgage company for them. If we are dealing with the mortgage company, we are in control of the money!
I believe the biggest hurdle is communication with the insurance carrier and/or adjuster. The adjuster’s goal is to work on claims specifically, that sometimes the payment and billing process can be overwhelming to them. I think all parties would be served by a more robust accessible portal for payments, that is accessible to contractors, for payment updates, and to reduce unnecessary calls and emails.