In the construction industry, progress payment arrears are a common problem. This not only affected the contractor's cash flow, but also threatened the smooth running of the project. Faced with this situation, how should contractors respond?
First of all, I would like to emphasize that contractors should start taking action once progress payments are more than two months in arrears. For example, workers in some types of work, such as carpenters and rebar workers, can be slowly withdrawn and transferred to other projects. The purpose of this is to reduce their own losses, and at the same time, they can also exert some pressure on Party A.
If progress payments are more than three months in arrears, the contractor can consider stopping work. In this process, be sure to keep good evidence, such as repeatedly dunning in the work group to explain the situation. This can avoid being bitten back by Party A in the end, saying that you don't want to do it.
In addition, contractors need to walk the talk. If you can't do it in the work group, then you have to do it in practice. For example, stop clocking in and out to reduce the number of people on site. This can let Party A see your determination, and also avoid being caught by Party A because of false punch cards.
In this process, the contractor should also maintain communication with Party A and try to obtain a reasonable solution. At the same time, you should also consider your own rights and interests, and do not give up your principles because of temporary difficulties.
In short, contractors must take decisive action to protect their rights and interests in the face of progress payment arrears. Only in this way can we be invincible in the fierce market competition and achieve our own development goals. Remember, it is the responsibility and mission of every contractor to uphold their rights. construction site