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“He who pays the piper can call the tune.” —John Ray, English Proverbs
This proverb from three centuries ago, in a whimsical way, makes a simple point: He who has the gold makes the rules. Since they are several levels down the “payment chain,” construction subcontractors are used to playing by others’ rules — indeed, rules that often are slanted against them. Experienced subcontractors know that playing by others’ rules does not, however, mean that there are not measures they can take to protect their companies against mistreatment.
Wouldn’t it be nice in the construction industry if subcontractors could, when not paid on time, just stop work, drop everything and roll away from the project until the progress payment (plus additional costs for stopping work) arrived? Dealing with slow payment is not as simple as “stop, drop and roll,” but stopping work for nonpayment can be a critical, effective tool when properly wielded.
Everyone’s heard the safety message, “Stop, drop and roll.” It’s one of those simple sayings that you’re supposed to be able to remember — even if you’re on fire! This well-known safety message conveys a simple solution to a pretty dramatic problem.
Wouldn’t it be nice in the construction industry if subcontractors could, when not paid on time, just stop work, drop everything and roll away from the project until the progress payment (plus additional costs for stopping work) arrived? Dealing with slow payment is not as simple as “stop, drop and roll,” but stopping work for nonpayment can be a critical, effective tool when properly wielded.
- How to check contract provisions for payment details about stored materials
- What to do if contract documents do not address payment for stored materials
Benefits
The American Subcontractors Association of South Carolina (ASA of SC) is organized under the framework of the American Subcontractors Association national office located in the Washington DC area.