Construction payment structure and risk simplified
from By Nate Budde
Construction projects have an interesting and unique payment structure. The credit-heavy nature and the routine, but unfortunate, lack of visibility throughout a project make payment issues of paramount importance for parties at both the top and the bottom of the payment chain. Historically, participants in the construction industry have had a remarkably challenging time getting paid (for those at the bottom of the payment chain), or properly controlling payments (for those at the top). And, because the construction industry is a credit-heavy market, it is easy to see why.
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