Cash Flow Tip 15 - Contractual Compliance

Compliance with Contractual Requirements to Avoid Getting Your Payments Held.

D. Brown Management Profile Picture
Share

Each contract, including the specifications, will have specific requirements for what you need to do each billing cycle to get paid. These may include:

Cash Flow: Tip 15 Contractual Compliance - Don't Get Payments Held
  • Billing forms or electronic processing systems, such as Textura
  • Notarization of billings
  • Certified payroll
  • Lien releases
  • Other backup for the billing, including invoices if it is a T&M or GMP project

You will need these documents from your company and likely from your subcontractors and key vendors. Make sure that you have the requirements for all these in their terms and conditions. 

Build relationships with everyone, including outside auditors, in the workflow who is responsible for reviewing and approving your billings for contractual compliance.   

If you aggressively bill and get approvals for the progress billing amounts, then this contract compliance backup is the last thing that can hold up getting paid.  


More from D. Brown Management
Learning, Doing and Teaching
Growth in life, career, and business is about a continual cycle of learning, doing, and teaching.
Ownership Transition - Key Buyer Risks
While different, buyers of a construction business have just as many risks as sellers. Deeply understanding the risks for both parties is a great start to creating the foundation of a deal.
Delivering Advanced Preconstruction Services
Delivering Advanced Preconstruction Services is the rigorous process of ensuring budgets are met along with maintaining features critical to the project owner / users.