How Should I Negotiate Payment Terms in Construction Contracts?
When you are drawing up a construction contract, it’s obviously important that you make your payment terms and conditions clear. You do not want there to be any confusion about how you get paid, when you get paid, or any other financial matters. Otherwise you could end up facing a cashflow problem when it’s time to move on to other projects. Fortunately, our Houston construction contract lawyers can help you protect yourself and draft contracts with more favorable terms.
Why Is It So Important to Negotiate Payment Terms?
If you do not negotiate payment terms before the job begins, you could run into major problems later. The construction industry can be a bit volatile, and that makes it even more important to eliminate as many variables as you can. Not knowing when you’ll get paid or how much can wreck any short- or long-term plans.
Every job requires an investment from you. You need equipment and materials. You need to pay your workers. Negotiating your payment terms upfront allows you to do that while helping your company grow and look forward to the next project.
How Can I Negotiate For Fair Payment Terms?
When you negotiate payment terms, you need to know a few things. You need to know the market, so that you can charge fair prices and adequately cover all of your bills. You do not want to scare off a potential client with high prices, but you also cannot do jobs that won’t be profitable. So some research is necessary.
You also need to be able to sell yourself. Know your value and make it clear what you bring to the project. You are worth an upfront deposit because your work is going to meet your client’s standards and then some. From there you can set a payment schedule and some rules about the final payment, when it’s due, and what happens if it is not sent in a timely manner.
Do I Need a Lawyer?
It’s a good idea to have a lawyer when you are drafting a contract, even if you think that it’s a small job you’re taking care of. We can make sure that nothing is left to chance and that there are no gaps that an unscrupulous client could take advantage of. You have to protect yourself and your business, and our law firm can help you do that.
What Can I Do If I Do Not Get Paid?
If you are not paid for the work that you did, you should reach out to the client first. Sometimes things get lost in the shuffle and mistakes get made. If you still do not receive payment, you have options like suing for breach of contract or placing liens. An experienced construction attorney can advise you on the most effective steps.
Contact Our Law Firm
If you do not want to be left high and dry after a big job, then you need to make sure that all of your contracts are in order. Contact Patout & Shaw and consult with our legal team to learn more about how we can have your back.
The post How Should I Negotiate Payment Terms in Construction Contracts? appeared first on Patout & Shaw.
