Malka & Kravitz, P.A. - Your Construction Law Firm
South Florida Construction Attorneys
Phone: 954-828-2807 | Toll Free: 888-341-9053

CONTACT FORM

super-lawyers
Distinguished AV LexisNexis Martindale-Hubbell Peer Review Rated for Ethical Standards and Legal Ability
Listed In Best Lawyers The World's Premier Guide
South Florida's Top Rated Lawyers
Certified The Florida Bar Construction Law
The Best Lawyers in America
The Associated General Contractors Of America
The Associated General Contractors Of America
ABC Associated Builders and Contractors Inc Member

That kink in your money line can cost you

| Oct 11, 2019 | Construction Law |

Very few companies or individuals are able to donate their services gratis. Most general contractors (GC) and subcontractors need to show up on the clock and await payment. But a problem arises when there is too much delay between work performed and payment rendered.

According to research, annually, both GCs and subs lose around $64 billion when payments are not timely rendered. Statistics indicate that it is especially difficult for subs who are material- and labor-intensive when the lag between labor and payment averaged 51 days. Over 60% of subs declined bids on projects when it was iffy when the GC or property owner would pay for the labor costs.

Fewer than 40% of subs claim to be able to defray late payments with their own resources and funding. Most subs are left twisting in the wind when the money train slows to a crawl. GCs don’t have it much better but may have deeper pockets. Still, general contractors who stress or stiff their subcontractors face uphill battles appeasing future work partners.

Costs can rise precipitously when payments slow to a crawl. There is also the risk of material man’s liens against the property — or even complete shutdowns of the building projects. Some stalled projects never again get the gas to proceed, which can cripple smaller companies who have put forth significant funding or investments to float their capital to pay the workers.

It’s hard to determine sometimes whether it is better to fish or cut bait on a project. While there are many factors to consider, it can still be difficult to discern the best path forward. Seeking legal guidance at this juncture can provide clarity when determining how to best approach the matter.

Archives

subscribe to our newsletter /
locationImg

OFFICE LOCATION

Malka & Kravitz, P.A. - Your Construction Law Firm

1300 Sawgrass Corporate Parkway
Suite 100
Fort Lauderdale, FL 33323

Toll Free: 888-341-9053
Phone: 954-828-2807
Fax: 954-514-0985
Map & Directions

| Email Us For A Response
super-lawyers
Distinguished AV LexisNexis Martindale-Hubbell Peer Review Rated for Ethical Standards and Legal Ability
Listed In Best Lawyers The World's Premier Guide
South Florida's Top Rated Lawyers
Certified The Florida Bar Construction Law
The Best Lawyers in America
The Associated General Contractors Of America
ABC Associated Builders and Contractors Inc Member