ALEXANDRIA, Va. - The top three payment issues that subcontractors say have an impact on their businesses are slow final payment, pay-if-paid clauses, and late progress payments, according to a survey of American Subcontractors Association members.
In order to address those and other persistent payment problems, ASA has designated 2003 as Payment Advocacy Year (PAY!).
"During Payment Advocacy Year, subcontractors are looking carefully at the causes of payment problems and developing solutions to address them," said ASA President Anne Bigane Wilson, CPC, P.E. "Unfortunately, the construction industry is plagued by laws, contracts, and traditional practices that reinforce the untenable position that nonpayment, or late or partial payment, for work properly performed is acceptable.
"PAY! focuses both on educating subcontractors about how to cope with, and make progress toward eliminating, payment problems, and on how subcontractors can make the case to enact new policies and legislation wherever necessary. PAY! is nationwide and encompasses the federal, state, and local levels," Wilson said.
Through the PAY! campaign, ASA is providing subcontractors with tools to combat payment practices on construction projects it considers unacceptable. ASA has more than 50 state and local chapters that are participating in PAY! and ASA is distributing a monthly newsletter to coordinate the campaign.
ASA is posting white papers, articles, and frequently asked question sheets about payment on its Web site at www.asaonline.com/pay.htm.
As part of the program, ASA members receive additional benefits and information through a monthly bulletin that features strategies that subcontractors are using to assure timely and full payment for work properly performed. ASA members also receive special reports and updates relating to payment topics and the PAY! campaign.