ASA of Metro Washington

1004 Duke Street

Alexandria, VA 22314

(571) 237-7101  |  ike@asamw.org  |  www.asamw.org

 

 

News Release

 

For release:                                                                                          Contact:

Feb. 17, 2017                                                                                      Ike Casey

                                                                                                            (571) 237-7101 

                                                                                                            ike@asamw.org

 

Subcontractor Payment is Becoming More Fair

For years, subcontractors have learned to live with slow payments.  Most of us expect to pay after we receive a service, have a project completed or obtain an item – like a meal or a new tool, or even a new building.  But in the world of construction subcontractors, the company completes its work, pays its employees, vendors, etc and then waits around for 60, 90 days or even longer for payment.  One group is trying to make this practice fair.  That group is the American Subcontractors Association of Metro Washington. 

The result of their efforts is taking shape in the District of Columbia as its Department of General Services prepares to reveal a Website that lists all payments made by the Department of Governmental Services.  Once Subcontractors are aware that their prime contractor has been paid, then they can pursue available legal avenues to obtain timely payment for completed work.  This results from legislation passed in 2016 that is likely to be a model for similar public displays of payments across the nation.  ASAMW is currently working with agencies in Virginia and Maryland to develop a way for subcontractors to be aware when the state agency has made a payment. 

“We think this will make it easier for us to collect our money,” says Frank Chiaramonte who is a subcontractor in Washington, DC.  I had to build my business up to the point that I could live on late payments, and this is unfair to someone trying to get started.  There are plenty of ways for the owner to withhold payment, but if the prime contractor has been paid for my work, then I need to get the money within 7 days.” 

“We do not foresee encountering opposition to legislation or regulation that enables this transparency,” according to Ike Casey, Executive Director of ASAMW.  “The only prime contractors who would oppose this are those who intend to hold money collected for a subcontractor’s work. If the work was not properly completed, then payment should never have been requested from the owner.  So any payments made for a subcontractor’s work is due immediately to a subcontractor.”

Casey went on the explain, “We expect prompt payment for completed work to become the norm throughout the DMV.  Schools, counties and other governmental agencies should follow DC’s lead and make their payments transparent to all and then we can approach the same practice in private construction.” 

Established in 1964, the American Subcontractors Association of Metro Washington represents the concerns and interests of construction subcontractors and suppliers in the Washington, D.C., metropolitan area through education and government advocacy. ASA of Metro Washington is the only construction association that concentrates exclusively on business issues affecting all subcontractors and specialty trade contractors, union and non-union, from virtually every trade specialty. For more information, visit www.asamw.org.

 

 

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Subcontractor Payment Becoming More Fair

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