On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Contract Clauses on Nov 16, 2015.
There is at least one universal truth in businesses of all kinds: no one likes to work for free. The risk of non-payment in the construction industry can be greater than in others because of the significant financial outlay that is required just to perform the work. Reimbursement for labor and material costs are required just to avoid losing money (not profit) on a job. And we all know what happens to companies that don’t at least break even most of the time.