Net 60

Net 60 shows up most in commercial construction, with larger general contractors, institutions and some property management companies. On a subcontract it often sits alongside a pay-when-paid clause, which can stretch the wait further.

Two months is a long time to carry payroll and material bills. Before you accept net 60, work out what you will have spent on the job by the time the first payment arrives, and whether you can cover it from cash or a credit line. That carrying cost belongs in your price.

Ways to soften it: ask for a mobilization or deposit payment, bill progress payments monthly so each invoice is smaller, ask suppliers for terms that match, and read the contract for retainage, which holds back part of each payment until the end.

Keep your lien rights in mind. Lien and notice deadlines run on their own clock, set by state law, and agreeing to wait 60 days for payment doesn’t extend them. Check your state’s deadlines when you take the job, not when the invoice goes past due.