Construction Glossary
Supplier Terms
Supplier terms are the payment agreements with suppliers, often replaced by material financing to better align with construction-specific payment timelines.
What Are Supplier Terms?
Supplier Terms refer to the conditions and agreements established between a construction contractor and their suppliers regarding the purchase of materials. These terms often include payment schedules, delivery timelines, and any financing arrangements that allow contractors to manage cash flow effectively. Clear supplier terms are essential for ensuring that materials are delivered on time and that the project stays on budget.
Example
Supplier terms might include a 30-day payment period for materials delivered to a construction site, allowing the contractor to manage cash flow effectively.