If you don’t take control of your applications for payment you may seriously impact your cash flow.
Here is how that happens. You submit your first pay app for project work completed in the amount of $100,000 and your cost for that work (material, labor & overhead) was $85,000 but you allow your general contractor or architect to revise your pay app downward to $90,000. You proceed with the revision because you are not confident in your applications for payment, or you simply feel it doesn’t matter as long as you receive the total contracted amount at the completion of the project. The reality is that you just financed your General Contractor or Architect $15,000.
You must continue to pay your payroll, employee benefits, rent, equipment/lease payments, utilities, insurance and the materials used for the project. The bigger the project and the longer it takes to complete the more it will impact you. Now can you begin to see the impact on your cash flow?
PAYearned gives you the confidence and accurate detailed support you need to stand behind your Applications for Payment.