Subcontractors and general contractors who actually perform work must pay for labor every week and keep materials and overhead current. When payments are late you know the consequences immediately. Here are a few remedies to ensure you get every penny you're entitled to.
BE AGGRESSIVE IN COLLECTING
To prevent collection problems, you need a plan. Institute a tough, consistent collection system--when a bill becomes delinquent it can quickly become a bad account or eventually a lawsuit. No contract is ever complete until you're paid for your work. Establish a "date certain" for payment as bills become due. If payment doesn't arrive on time--take action immediately.
The first place to look for potential cash flow pitfalls is in how your contracts are drafted. You can't be too careful in checking to see they're executed right. Remember to have specific dates written into the contract to indicate when payments must be made.