Late payments in construction projects with Saudi partners can be a challenging issue to navigate. In this article, we will explore a Recovery System for Late Payments specifically tailored to address this issue.
Key Takeaways
- Establish a thorough initial recovery phase to assess the likelihood of payment recovery
- Consider legal action as a recommendation for cases with limited recovery possibilities
- Understand the collection rates and costs associated with pursuing late payments
- Utilize skip-tracing and investigation techniques to obtain debtor information
- Collaborate with affiliated attorneys for effective debt recovery strategies
Recovery System for Late Payments
Initial Recovery Phase
In our collective experience, the Initial Recovery Phase is critical. We spring into action within 24 hours of account placement. Our approach is systematic and relentless:
- The first of four letters dispatched via mail
- Comprehensive skip-tracing and investigation
- Persistent contact attempts through calls, emails, texts, and faxes
Persistence is key. Daily attempts are made to engage debtors for the first 30 to 60 days. Failure to resolve the account propels us into the next phase, involving our network of affiliated attorneys.
We’re committed to a resolution. If initial efforts don’t yield results, we don’t hesitate to escalate the matter, ensuring your case receives the attention it deserves.
Legal Action Recommendation
When we’ve exhausted all initial recovery efforts and the debtor’s assets suggest a viable chance of recovery, we recommend litigation. This step is critical; it’s where we must weigh the potential benefits against the upfront legal costs. If you decide to proceed, be prepared for expenses such as court costs and filing fees, typically ranging from $600 to $700. These are necessary to initiate the lawsuit for the recovery of all monies owed.
Should our litigation attempts not yield results, rest assured, you will owe nothing further to our firm or our affiliated attorney.
It’s essential to understand the financial commitment required for legal action. Below is a breakdown of our competitive collection rates, which vary depending on the age and amount of the claim, as well as the number of claims submitted:
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For 1-9 claims:
- Accounts under 1 year: 30%
- Accounts over 1 year: 40%
- Accounts under $1000: 50%
- Accounts placed with an attorney: 50%
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For 10 or more claims:
- Accounts under 1 year: 27%
- Accounts over 1 year: 35%
- Accounts under $1000: 40%
- Accounts placed with an attorney: 50%
The decision to litigate is not one to take lightly. We stand ready to guide you through this process, ensuring that you are fully informed every step of the way.
Collection Rates
Understanding the collection rates is crucial to managing expectations. We tailor our rates competitively, ensuring you get the best possible return on your recovery efforts. Here’s a quick breakdown:
- For 1-9 claims, rates vary based on the age of the account and the amount owed.
- For 10 or more claims, we offer reduced rates, rewarding your bulk submissions.
Our commitment is to provide you with transparent and fair pricing, reflecting the complexity and age of the claims.
Here’s a succinct table for your reference:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, these rates are applied to the amount collected, incentivizing successful recoveries. We stand by you, ensuring that if litigation fails, you owe nothing to our firm or our affiliated attorney.
Frequently Asked Questions
What is the Recovery System for Late Payments in Construction Projects with Saudi Partners?
The Recovery System consists of three phases: Initial Recovery Phase, Legal Action Recommendation, and Collection Rates.
What happens in the Initial Recovery Phase of the Recovery System?
In the Initial Recovery Phase, letters are sent to the debtor, skip-tracing and investigation are conducted, and attempts are made to contact the debtor for resolution.
When is Legal Action recommended in the Recovery System?
Legal Action is recommended if all attempts to resolve the account in the Initial Recovery Phase fail.
What are the costs involved in proceeding with Legal Action in the Recovery System?
If legal action is recommended, upfront legal costs such as court costs and filing fees ranging from $600.00 to $700.00 are required.
What are the Collection Rates for accounts in the Recovery System?
The Collection Rates vary based on the age and amount of the accounts, ranging from 27% to 50% of the amount collected.
What happens if attempts to collect via litigation fail in the Recovery System?
If attempts to collect via litigation fail, the case will be closed, and no fees will be owed to the firm or affiliated attorney.
