Three problem accounts made up the bulk of the $140K. One GC was disputing a flatwork completion, claiming surface quality didn't meet spec at sign-off. One was simply slow — the project owner hadn't released funds to the GC. And one hadn't responded to the last three invoice emails.
Meanwhile the concrete supplier had extended terms twice. The ready-mix account was current but barely. And the owner had stopped paying himself to keep payroll liquid.
The missing piece: There was no formal follow-up process. Invoices went out by email. When they didn't get paid, the owner called. When calls didn't work, nothing happened. The GCs had learned this was a low-friction account — which meant they paid later.
Concrete billing is milestone-based. When a GC disputes completion or delays sign-off, the billing clock stops. Without a formal follow-up process and lien rights awareness, the concrete sub waits at the GC's schedule. A documented escalation path — follow-up at 30 days, formal demand at 45, lien at 60 — changes that dynamic entirely.
Industry average is 60–75 days for concrete subs in the $1M–$10M range. Best-in-class with formal AR processes and lien rights management collect in 35–50 days. Every 10-day reduction at $3M revenue is roughly $80–100K of additional liquidity — which is the difference between making payroll easily and scrambling.
Three steps: submit pay apps on schedule, send a formal written follow-up at 30 days, and file a preliminary lien at 60 days. Most contractors do the first and skip the last two. The lien notice is what actually accelerates payment — GCs respond to documented lien exposure in a way they don't respond to phone calls. Schedule a call if your AR is aging past 60 days.
Stalled receivables don't collect themselves. SPM builds the process that does.
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