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Episode Summary
In this episode, Stu Davidson discusses how specialist subcontractors and suppliers can protect themselves from late payments, retentions, and complex payment terms.
Stu recommends the following:
- Do your due diligence on the main contractor or tier one that you're working for. Talk to other specialists to see if they get paid on time, check out the contractor's credit rating, and make sure you understand the payment terms.
- Have your own terms and conditions in place. These should align with your values and business needs. Don't be afraid to negotiate with the main contractor on things like retention periods and payment terms.
- Make sure you're submitting your applications correctly. This includes submitting them on time, to the right person, and in the correct format.
- Keep good records. This will help you support your applications and make it easier for the main contractor's QS to assess them.
- Late payments are still a major problem in the construction industry. 68% of payments are late, costing the industry £11.4 billion.
- Specialist subcontractors and suppliers are often the most vulnerable to late payments.
- There are a number of things that specialist subcontractors and suppliers can do to protect themselves from late payments.
- Doing your due diligence on the main contractor, having your own terms and conditions in place, submitting your applications correctly, and keeping good records can all help to reduce the risk of late payments.
- Using a PVA tracker can also be a helpful way to keep track of your progress and applications.
By following these tips, specialist subcontractors and suppliers can increase their chances of getting paid on time and protect their businesses from financial risk.
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