Your construction company prides itself on carrying out high quality work for a fair price. Thus, you often attract new customers while also managing to retain existing clients.
Unfortunately, customers don’t always live up to their side of the bargain, and they may refuse to pay even when you have completed the work to a high standard. What are some of the most common excuses for non-payment?
Claims that the work was defective
Part of your process is to carefully monitor jobs as they evolve. You provide opportunities for feedback at every stage of the construction work. This allows you to make changes, if necessary, before a job is completed. This keeps your customer happy and also prevents you from having to outlay too much of your own funds before receiving payment. If you received no negative feedback throughout the job, but the customer has claimed the work is defective upon your request for payment, they could be doing this to avoid paying you all together.
Another party has not paid them
Another common excuse for non-payment occurs when a client states that they need to be paid before they can pay you. The client may be running their own business and cash flow could be tight, so the excuse might be valid. However, third parties should not interfere with you receiving payment after completing your end of the deal. If you have agreed on a contract, then you must be paid according to the terms of that contract, whether or not another party has not paid your client.
Waiting for payment or not receiving it at all can put your business in trouble. In such a situation, you do have collection options. Seeking legal guidance will give you a better idea of what to do in ways that are personalized for your circumstances.
