Collecting money can be a challenge, make sure you protect yourself.

Q: How do I handle a client that is not paying?

A: Protect yourself and do everything you can to collect the money.

1. It happens too often in construction – slow paying clients
   1. Part of it is just the nature of the industry – we can live with that
   2. Sometimes it goes beyond the normal
   3. In some cases it’s deliberate
2. First, we have to protect ourselves properly
   1. Have a clear contract that outlines terms and remedies
   2. Protect your lien rights and file when necessary
   3. Know your rights under surety bonds
3. Try to do all you can to collect
   1. Communicate frequently and openly about what you intend to do if not paid
   2. Follow the contract – be sure you comply first then issue proper notices
   3. Follow the money – go upstream to where the money is coming from to notify and verify
   4. Notify your client of default and set time line for stopping work