ALAMO CONTRACTING SOLUTIONS
Working Capital for Subcontractors
Public works pays reliably — eventually. Bridge the gap between project milestones and agency payment so you can keep the job running without floating costs out of pocket.
Government and public works contracts are among the most reliable payers in the construction industry — but they are also among the slowest. Municipal, county, state, and federal agencies operate on bureaucratic payment approval cycles that can stretch 45 to 90 days even when your work is complete and your pay app is submitted correctly.
For a subcontractor, that gap is real money. You've bought the materials, paid the crew, and completed the work. The agency will pay — you know that. But the timeline doesn't match your overhead schedule, and waiting is not a neutral position when labor costs keep running.
Government entities are among the most creditworthy payers in the world. They don't go out of business. They don't dispute invoices in bad faith. They pay — it just takes time.
That makes government subcontract receivables ideal candidates for a Receivable Purchase Agreement. When we purchase your receivable on a government project, we have a high degree of confidence in the payor (the agency or prime contractor) and can structure advances accordingly.
In many cases, government project receivables are easier to finance than private sector work precisely because the payer risk is minimal. The only variable is timing — and that's exactly what we solve.
Most public works projects above a certain dollar threshold require the prime contractor to carry a payment bond. As a subcontractor, that bond is actually a form of protection for you — it guarantees your right to payment from the surety if the GC fails to pay.
A payment bond does not prevent you from financing your receivable. The assignment of your receivable to Alamo ACS is consistent with your rights under the subcontract and does not affect your protection under the payment bond.
We are experienced with bonded government projects and can walk you through the assignment process specific to your contract.