THE CONSTRUCTION SUBCONTRACTOR AR COLLECTION SYSTEM.
An AR collection system is not aggressive. It is consistent. The difference between a subcontractor who collects fast and one who always has cash problems is not the GC relationships — it is the process. A weekly AR aging review, a defined call cadence at 31, 46, and 60 days, and clear escalation triggers at 90 days recovers more cash than any other single change you can make to your financial operation.
Most subcontractors treat collections as a last resort — they call when they are desperate. GCs notice. Desperate calls from a subcontractor with a $180,000 outstanding invoice damage relationships more than a professional follow-up call at 31 days ever will. A calm, consistent process signals that you run a professional business. That is not just good for cash flow — it is how you get paid faster and keep the GC relationship intact.
THE PROCESS THAT RUNS EVERY MONDAY — WITHOUT EXCEPTION.
Pull the AR Aging Report
Every Monday morning, the AR aging report is the first financial document reviewed. Every invoice that crossed into a new aging bucket since last Monday gets flagged. 31-day invoices get a courtesy confirmation call added to the weekly call list. Anything newly at 46+ days gets a collections call scheduled for that same day. This is not a monthly activity — it is a weekly rhythm. Problems caught at 46 days have a recovery window. Problems caught at 90 days have a legal window.
"Just confirming receipt and no open questions"
At 31 days, call the GC PM or AP contact. Script: "Hi, this is [name] from [company]. I wanted to confirm you received our pay application for [project] submitted on [date] and there are no open questions or documentation needed on it." This call is not a collections call — it is a professional business check-in. It plants a flag that you are tracking the invoice specifically, confirms it is in their system, and typically accelerates payment by 5–10 days without any pressure.
"When can we expect payment on this invoice?"
At 46 days, this is a direct collections call. Script: "Hi, this is [name] from [company]. I'm following up on our pay app #[X] for [project] for $[amount] submitted on [date]. Our records show payment has not been received. Can you confirm when this will be processed and give me a specific date?" The goal is a specific date — not "soon" or "next check run." Document the conversation: date, person, commitment made. Follow up if the date passes without payment.
GC project executive or VP — written confirmation
At 60 days without payment following a 46-day commitment, escalate to the GC's project executive or VP level. Send a written notice — email — with the invoice number, amount, submission date, the 46-day commitment made and not honored, and a request for response within 48 hours. Copy your own project manager. Do not threaten legal action in the first escalation. State facts. Request resolution. This level of escalation resolves most invoices.
Preserve your lien rights before the window closes
At 90 days with no payment plan in place, send a preliminary lien notice where applicable. This is not filing a lien — it is the formal notice that preserves your right to file. The window for lien rights varies by state and by how many days since first furnishing. In many states the preliminary notice must be sent within 20–90 days of first furnishing labor or materials. Do not wait until 90 days past invoice to start tracking lien notice deadlines — track them from day one of the project.
WHAT TO LOG AFTER EVERY COLLECTIONS CALL — AND WHY.
Why documentation matters: If this invoice ever escalates to a lien, arbitration, or legal action, your call log is your evidence that you attempted to resolve the dispute before filing. GCs know this. A professional call log sent in a dispute letter demonstrates that you ran a proper collections process — which strengthens your position in every subsequent negotiation and legal proceeding.
FREQUENTLY ASKED.
