Project completion. [Photo/https://ndatani.com]
When all is said and done, trust is the only cement that sees the construction project to completion.We trust that every party to the contract will fulfill their obligation to the best of their ability. And the presence of contracts is just meant to enhance this principal and nothing more.Look at it this way; a contractor will do work for an individual, trusting that he will be paid on time for all he has done.Now, he may have a contract, that spells the amount to be paid and the consequences of not being paid, but if the client is a rogue one, they will just end up dragging each other in court for years. The same thing goes for consultants.Mark you, receiving a deposit is not by itself a guarantee. There are cases where all one received for a certain job was just that deposit.Sad, huh! The opposite is also true, and there are cases where a client paid for work that was never done.This occurs where the contractor absconds the project once paid or delivers some shoddy works. I say this matter is easier to handle as opposed to the former because the client can choose to encash the performance bond or report the contractor to the National Construction Authority for appropriate measures.When a client holds your payment unnecessarily long or never pays at all, this becomes a bit tricky. And especially if he does not issue payment guarantees. One may be the contractor decides to abandon the works but chasing for his money may require some abrasion.This is similar to how landlords have mastered the game of auction those who don’t pay rent. It’s therefore very important for everyone to do a background check on however they are dealing with.Chances are if someone is holding your payment, they have done it to several other people and the reputation is out there.Cases of jumping into a contract blindly should be minimised.And if you find yourself caught in such a situation, you should tread with caution.Private clients, especially individuals are most notorious. And my suggestion is that if the client fails your risk assessment, then you make them sign a payment guarantee. In this case, the bank or the insurance company will always pay if the client does not honor his word.