Over the past several months, we have seen a major change in the
economy. All the sectors of the economy have been affected
including the construction industry. While certain areas of the
construction industry are more buoyant than others, there has
clearly been a change in attitude sparked by the downturn in the
economy. As such, owners, contractors, subcontractors, and
suppliers must ensure that they take the appropriate steps to limit
their risk. Set out below are ten steps that owners, contractors,
subcontractors, and suppliers should consider:
1. What are the payment terms?
During the course of the last few years, payment terms have, in
many instances, been extended out from 30 to 60 days and beyond. If
possible, one should attempt to shorten the payment terms.
Obviously cash flow is important to any construction project and
the sooner the funds work their way into the construction pyramid,
the better for all. As such, on all new work,
