Agreeing to terms regarding payments for products or services rendered is an integral component of preparing to initiate project operations. Construction companies and subcontractors in California who are preparing to start a new project may find that there are numerous available options for payment plans. One such option might pertain to progress payments, which involves an arrangement in which payments are made at set intervals, and such a payment option may come with its own set of possible advantages and disadvantages.
Pros and cons
When it comes to progress payments, experts indicate that there could be a variety of possible benefits involved. For instance, such an arrangement could allow certain parties to receive payment throughout a project instead of at the end, while other parties might also prefer to issue payments in this manner. With similar arrangements, it might also be less difficult to identify and resolve payment issues.
However, experts also indicate that there may be certain downsides to similar options. Certain payment requirements might act to further complicate matters and the process of carrying out complex tasks during a project could result in loss of valuable time. As with any other type of payment plan, progress payment arrangements are not infallible and there are a variety of scenarios in which disputes might arise.
Construction disputes stemming from payment issues can be complex in nature, and such issues could take a significant toll on the financial stability of all parties involved. Those who encounter payment disputes and wish to know more about how best to approach the situation could consider retaining the services of an attorney for advice on their options. An attorney can work with a client in taking every possible measure to protect his or her business interests and provide insight on how to mitigate the risks of similar issues in the future.