DFW International Airport Subcontracting Easier For Small Business With Innovative ‘Expedited Payments’ Program
Small businesses to be paid 58 percent faster; prime contractors reap added benefit through program
(DFW INTERNATIONAL AIRPORT – November 12, 2007) – Small businesses will be paid faster than ever with a new innovative ‘Expedited Payment’ program pioneered by DFW International Airport. The groundbreaking program offers the promise to pay subcontracts as much as 53 days faster than the current standard.
“The new program improves the cash position for small businesses, helping them to pay employees, suppliers and even complete the job more effectively,” said Don O’Bannon, vice president of the small and emerging business department at DFW. “We are trying to strengthen businesses that work with DFW by alleviating some of the firms’ cash flow issues.”
Contractors who sign up for the program will be paid an incentive for their advance payments to subcontractors working on their behalf – between when they are billed and when they bill DFW. The Airport’s Small and Emerging Business Department developed the firstofitskind program to encourage improved business environments for small business and superior services delivered to the Airport.
Contractors who are awarded new multiyear deals will be asked to participate in the voluntary expedited payment program. Contracts totaling more than $10 million for facilities maintenance or construction will be eligible for the innovative service, which ultimately benefits the small business’ ability to grow while working on large contracts.
The Airport expects to pay as much as $58,000 to its prime contractors during the first year of implementation for the payments made to subcontractors. Payments to sub contractors could now occur as fast as 7 days after invoicing. The new program reduces payment times by as much as 58 percent.
For J.D. Power and Associates Award information, visit www.jdpower.com.