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Updated almost 7 years ago,
Average time to pay bills to contractor during a build
I'm in the middle of a duplex build on a piece of property that I own. The arrangement with the builder is that on the 1st of the month, he will send me the invoices received from the previous month from the various sub-contractors. THere is a 9% builder fee added to the invoice total, and I am to have the money to them in 5 days. Yes... 5 DAYS. I was amazed.
What is even worse about this, is that a company I own is a sub-contractor of this builder. So, at some point, I'll be receiving and paying for my own invoice. I know how slow they pay their subs. Their policy is that any invoice received by the 25th of the month, will be paid on the 10th of the month of 2 months following the submitting of the invoice.
If I submit an invoice on Jan 24, I can expect payment to be mailed out on March 10.
However, they want me to pay in 5 days. Even a credit card company gives me 20 days.
Any suggestions on how to deal with this? I'm asking from the perspective of me as the client of the builder. Not asking about the late payment to me as a sub-contractor.
Thanks