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How to Manage Late Payments or Unpaid Invoices

How to Manage Late Payments or Unpaid Invoices

Many contractors and construction companies deal with late payments and unpaid invoices – they will get paid late or not in the full amount. Like with most businesses, it is essential to have this money on time to run your business as a whole. With late or unpaid payments, your business could suffer. Contractors can legally claim their payment for work that was done.

Late or unpaid payments can affect the way your business is run and if your employees get paid. You might not be able to improve the equipment or tools you use if clients don’t pay on time.

So, how should you deal and manage payment issues?

  • Let clients know you have late payment fees upfront.
    • You could start with a 2 percent penalty if the client doesn’t pay within 30 days.
    Review the signed agreement with the client.
    • A contract secures your legal rights and helps with the payment. Review this before the project begins.
    Start negotiating with the client.
    • Discuss concerns with the client. Ask why you aren’t receiving the payment. Come up with a plan for them to settle their debt with you.
    Agree upon a fixed payment schedule.
    • With a schedule, you are listing an exact date payment is due. Both parties must agree.
    Document invoices and other documents.
    • With the right paperwork, you can keep track of what is owed and what has been paid.
    Stay in good communication
    • Always stay on top of communicating with everyone you work with for less mishaps.
    Take the client to court if client continues to not pay.
    • Don’t hesitate to go to court. If the client won’t pay or negotiate, it’s time for a law expert to step in.

    How to Get Your Contractor’s License

    Working as a contractor is an exciting and rewarding career, but it can be stressful when clients don’t hold up their end of the bargain. If you follow the tips above, getting your money on time will be easier.

     

    Need a contractor’s license? We can help get you licensed. We are a Florida contractor licensing company. To start the application process, you will provide us information about yourself, your skills, your background, your testing results, your education, your job experience, etc. We will submit a correct and completed application to the Construction Licensing Board on your behalf. read more

How to Find Quality Subcontractors

How to Find Quality Subcontractors

 

There’s a lot of things that lead to a successful contracting company and projects. Skills, experience, time management communication, and the people you hire. As a contractor, the people you hire, subcontractors, are a reflection of you. You want to hire quality, skilled workers so the project is more likely to be completed on time and within budget.

For this article, we wanted to share with you some ways you can find good subcontractors. There’s currently a labor shortage in the construction industry, so it’s even harder than ever to find good workers.

  • Ask friends, construction friends, construction industry people, and online construction discussion groups about finding workers.
  • Look online through Craigslist and Angielist for people looking for work.
  • Hire a past (good) subcontractor.
  • Ask a past subcontractor for a recommendation.
  • Ask specialty retailors for recommendations.
  • Look on online job boards like Indeed and Monster.

 

When you are looking to hire a subcontractor, there’s some things you should do to help find yourself a better-quality worker.

  • Talk to them and evaluate their communication skills.
  • Take note of your impression of them. Do they give you a good or bad feeling?
  • Ask about their previous work experience, skills, past jobs, certifications, licenses, insurance coverage, references, and a portfolio.
  • Run a background check.
  • Talk to their references to get a feel for their personality, how they worked, and what their skills are.

How to Get Your Contractor’s License

One of the biggest things your subcontractors needs, especially in Florida, is a contractor’s license. They cannot work legally without it!

We can help get your subcontractors licensed. We are a Florida contractor licensing company. We have helped thousands of contractors across the United States get their contractor license in all specialties. read more

The Importance of Liability Insurance and Worker’s Compensation Insurance in Contracting

The Importance of Liability Insurance and Worker’s Compensation Insurance in Contracting

In most states, you need liability insurance and worker’s compensation insurance with your contractor’s license. With insurance, potential clients will take you more seriously, but you will also be protected if accidents or damages occur.

Why is liability insurance important? If a homeowner hires a contractor with liability insurance, he/she will be compensated for any damages on the property caused by bad materials or shoddy work. This insurance can cover the cost of repairs for damages caused by a contractors, it can cover any court judgments and medical/funeral expenses if anyone is injured while working, and it can cover the cost of fixing the mistakes if the contractor fails to meet an expected standard.

Why is worker’s compensation insurance important? Worker’s compensation protects workers by providing wage compensation and medical assistance when on-the-job injuries occur. A homeowner will not have financial liabilities if a worker hurts themselves on his property if the worker is insured. read more

Why A Contractor Should Have Insurance

Why A Contractor Should Have Insurance

One of the mottos of the Boy Scouts of America is “Always Be Prepared.” In life, accidents happen, mistakes happen, and unforeseen things happen. In the world of contracting, it’s better to be safe than sorry and invest in insurance. A contractor has a dangerous job and working without insurance is risky. Hiring an uninsured contractor is generally cheaper, but there is a higher liability when no insurance is in play.

General contractors, in most states, need to carry liability insurance and worker’s compensation insurance.

Reasons to only hire an insured contractor:

  • The contractor can repay and compensate you when problems or issues occur.
  • Homeowner’s insurance has limitations, so you need a contractor with liability insurance and workers compensation insurance.
  • A contractor with insurance shows credibility and responsibility. A contractor with insurance shows he/she is reliable and plans to work for a long time.
  • A contractor with insurance shows their quality is likely better because contractors who don’t do quality work can lose their license and you can’t have a contractor’s license without insurance.
  • Investing in an insured contractor can help you save later with maintenance. Also, if repairs are needed or damage occurred, you are not obligated to cover the cost if the contractor you hired was insured.
  • Your insurance can refuse a claim when they learn a contractor you hired was uninsured.
  • It can be easier to tell a house if work was done by licensed contractors up to code.

Get Your Contractor’s License

If you’re looking to get your contractor’s license, remember you will also need to be insured if you want to be credible. Potential clients will trust you more if you are licensed and insured. Also, it is illegal in Florida, and many other states, so you need to be licensed to practice legally.

 

Need a contractor’s license? We can help get you licensed. We are a Florida contractor licensing company. We have helped thousands of contractors across the United States get their contractor license. We can help you become a general contractor, electrical contractor, plumbing contractor, and much more. read more

Tips to Avoid Construction Delays

Tips to Avoid Construction Delays

Construction delays happen and many projects are often behind schedule. It’s easy to become delayed as there are many avenues for things to go wrong whether with ordering materials, broken parts, labor issues, etc. No one benefits from a construction delay – it hurts the contractor, subcontractor, and owner.

Some delays are out of our control like inclement weather or a city issue while other delays are non-excusable and could have been avoided such as poor planning or poor workmanship.

Critical delays need to be attended to immediately because if they are not addressed. Compensable delays. Compensable delays include errors and omissions and owner-directed changes. Concurrent delays are when two or more delays happen at the same time.

Tips to avoid delays:

  • Create a project scope assessment.
  • Overestimate the time a project will take.
  • Understand and have a knowledge of codes and regulations of cities.
  • Don’t cut corners.
  • Have full financing in place before committing to a project.
  • Invest in budget software.
  • Make sure schedule changes are anticipated in the planning phase.
  • Know your own project limitations.
  • Plan for extra worker/employee support.
  • Have a back-up crew.
  • Hire quality workers.
  • Use software to track staff and productivity.

There are different kinds and levels of delays, and a contractor needs to be aware and prepared for any and all of them. Some delays can be avoided, others cannot. The more prepared a company is, the smaller the delays will become and less frequent, so you can stay on time and on budget. read more