So You Want to Get Paid? Five Tips for Securing Payment For Performance?

Building & Bonding: The Construction Group Newsletter

Despite the feeling of success achieved upon placing an order, manufacturing a component to specification, and on-time or even early delivery of a project, these successes depend on the ultimate achievement of getting paid for one's performance, labor, equipment and/or materials.

In good times and particularly in challenging economic times, the failure of payment for performance will not only cause a direct impact to your business and operations, but also, potentially, to those suppliers, subcontractors and consultants who assisted you in the delivery of the required project, materials, components and services. You may want to make certain they have been compensated to allow them to continue operations, avoid your own litigation and avoid impacting future deliveries. However, being required to make such a payment in the absence of payment to you by the ultimate purchaser may leave your company in an impaired