net 30 , 60, or 90

[MBLES]

The net 90days is looking to be the norm these days with larger GCs. The net 90 is the a way for GC to finance these GCs projects. are there any inclusive or exclusive items to add to a general service agreement. I think if a GC wants to make you wait you should have some leverage, like not getting a final inspection til after you get paid. Not getting final would hold up their Occupancy certificate. it seems the GC has all the power for these projects like this. I can opt out and not submit GSA for 30 days but not sure if i would be out of bid process as a vendor because i wont wait 90 days.

 

[Dennis Alwon]

My residential builders pay me within 30 days and some within a few days. Occasionally one contractor goes over 30 days but will pay shortly afterward. I suspect commercially it is different. I have been very fortunate with my builders.

I have one that asks for the invoice by the end of the month and you'll get paid by the 10th. However, if you wait until the first of the month then you won't get paid till the 10th of the following month. If it is a big job and I am not done I will put it in before the end of the month and anything left over will be the following month

 

[kwired]

I am no expert on contracts and the laws, but a contract is mostly an agreement signed by both parties, make sure that agreement has payment terms included in it, then he is in breach of the contract if he doesn't pay you when the contract says you will be paid.

Keep in mind this advice is worth every penny you paid for it.

 

[gadfly56]

I am no expert on contracts and the laws, but a contract is mostly an agreement signed by both parties, make sure that agreement has payment terms included in it, then he is in breach of the contract if he doesn't pay you when the contract says you will be paid.

Keep in mind this advice is worth every penny you paid for it.

I find that the payment approval process is usually the culprit. So, you're in the first month of the project and you're going to send in your first invoice. Usually you don't want to wait until the end of the month because the deadline is the 20th, so you have to estimate the last 10 or 11 days of the month. You get your paperwork together, including your provisional lien waiver and that for any subs you have and you get them in. Now the GC or the project manager reviews your submittal to make sure you're not billing ahead of your installation and if that's OK it goes to the owner for review. Most likely, there will also be a bank review. Figure not less than 5-7 business days at each step, assuming all goes well. That puts you out around the 10th or 12th of the next month. Well, sorry to say, they cut the checks on the 10th of the month but the final approvals have to be in to accounting by the 5th, so you missed that cycle. And if there are any hang-ups at all, you could easily miss the next check cycle as well.

 

[kwired]

I find that the payment approval process is usually the culprit. So, you're in the first month of the project and you're going to send in your first invoice. Usually you don't want to wait until the end of the month because the deadline is the 20th, so you have to estimate the last 10 or 11 days of the month. You get your paperwork together, including your provisional lien waiver and that for any subs you have and you get them in. Now the GC or the project manager reviews your submittal to make sure you're not billing ahead of your installation and if that's OK it goes to the owner for review. Most likely, there will also be a bank review. Figure not less than 5-7 business days at each step, assuming all goes well. That puts you out around the 10th or 12th of the next month. Well, sorry to say, they cut the checks on the 10th of the month but the final approvals have to be in to accounting by the 5th, so you missed that cycle. And if there are any hang-ups at all, you could easily miss the next check cycle as well.

Understandable. But if your contract says payment requests are due on a certain day of the month and you will be paid by a certain day of the month, then as long as you get your request in correctly and on time, the other party is in breach of that contract if they don't pay you by the time stated in the contract regardless of what their normal procedure may be.

 

[gadfly56]

Understandable. But if your contract says payment requests are due on a certain day of the month and you will be paid by a certain day of the month, then as long as you get your request in correctly and on time, the other party is in breach of that contract if they don't pay you by the time stated in the contract regardless of what their normal procedure may be.

You're right, but there are so many games to be played. "The owner hasn't paid us yet. See the contract; you have to wait too." "The bank is disputing your completion percentages." "The accounting office was closed Friday for the holiday. You were supposed to get your paperwork in 2 days early this period." If you are running under an AIA contract form, you are toast on recourse.

 

[kwired]

You're right, but there are so many games to be played. "The owner hasn't paid us yet. See the contract; you have to wait too." "The bank is disputing your completion percentages." "The accounting office was closed Friday for the holiday. You were supposed to get your paperwork in 2 days early this period." If you are running under an AIA contract form, you are toast on recourse.

My contract isn't with the owner, your job as pimp, I mean GC, is to collect from the owner and distribute to the subs, per your contracts.