What do you need to do to make sure you get paid?
It’s no secret that the construction industry has taken a massive knock.
- Rising inflation
Lots of construction companies are going out of business. It’s a bit of an epidemic at the moment.
Why is this happening?
- Inability to resource a project.
- Inability to get materials.
During COVID-19, many governments pumped money into the construction industry to stimulate growth and the economy. This meant that despite Covid a lot of construction companies did well. TO A POINT. The problem is that so many of these businesses signed terrible contracts. They signed contracts that pushed ALL the risk onto them.
Then they weren’t able to deliver because of things like
- Labour shortages
- Material shortages
This means delays. And if you’ve signed a risky contract, DELAYS cost YOU money.
And… often you can get hit with liquidated damages if you’re not careful. The reality is that even though delays are often not your fault, if you’ve signed a bad contract they will be your PROBLEM.
DELAYS also mean that there’s often a snowball effect.
If you’re delayed by months, because you’re waiting on other contractors to finish their work, within that time the cost of materials and labour could have increased. This means you’re making less money.
Basically, it comes down to having your cash flow squeezed to the point where you run out of money.
How do we protect cash flow?
- Have a clause where you can terminate for default.
- Always follow the procedure and whatever happens, keep submitting all of your paperwork.
- Do EVERYTHING according to the contract.
We want you to be the MOST SUCCESSFUL you can possibly be. That’s why we put together content with tips and advice that is tried and tested. For more tips and contractual advice, Quantum Contract Solutions is here to guide and assist you through everything contract related.
For more contractual advice, Quantum Contract Solutions is here to guide and assist you through everything contract related. Let’s reduce risk in your contracts and save time and money, just click this link to get our FREE case study to show you how clients just like you are doing it.