Payment delays are common in the construction trades for various reasons, and roofing contractors are no exception. There are, however, some steps they can take during the roof installation process to prevent that scenario from playing out on a job, said RC Legal Insights expert Trent Cotney.
In one “classic” scenario, a leak that occurs during a project could generate an insurance claim, which a facility owner or general contractor may use to postpone payment, said Cotney, partner with Adams & Reese.
“I've had a lot of contractors stuck in that ‘Catch 22’ where the owner doesn't want to pay until the insurance claim is resolved,” he explained in this brief videochat.
One step contractors can take is to make payment schedules unconditional in their contracts. Hear more about that and other strategies by watching the full conversation here.