Manages relationships with our national network of over 200 commercial construction project managers that have sub-contractors in our program, helping them mitigate project risk with our Cash Management & Funds Control program. With over 15 years of experience in project planning and scheduling, cost estimating, monitoring and reporting, and financial analysis, Scott works closely with project managers all over the country and the related commercial construction projects and subcontractor field operations. More...
Thanks for posting a great question, we are seeing this issue almost daily, especially since the start of the COVID crisis. Everyone from owners, GC's, 1st tier subs, 2nd tier subs and suppliers are concerned that if the music stops unexpectedly they will be left holding the bag. The best way to handle this is to keep your side of the street as clean as possible, meaning to pay all your subs, suppliers and vendors when you bill for a particular period. The obvious See More...See More...
I agree with Matthew above. It would largely depend on the circumstances surrounding the amount or price of the contract. If you under bid the project there isn't a lot you would be able to do other than negotiate with your customer about the circumstances. Likewise, if the scope has changed since you originally bid the job, and it has increased your costs, I would assume a scope change order would be appropriate. If you are billing for work comSee More...See More...
I agree with Peter, a contract with clear enforceable provision, including a scope of values (SOV). This is usually the breakdown of the scope on the project with assigned billing values. This is where you want to make sure you have a line item in the SOV for "mobilization" or "initial payment" that is agreed upon, giving you the subcontractor an opportunity to bill for some of the upfront material and labor before you start your project. I am also available tSee More...See More...