B2B Debt Collection for Aerospace & Defense Contractors

Recovery timelines vary based on dispute complexity and payment obligation clarity. For straightforward non-payment cases where contract terms are clear, we typically achieve recovery within 30-90 days through Prompt Payment Act enforcement or FAR appeal. More complex disputes involving contested scope or contract interpretation may require 4-6 months. Our contingency model ensures we invest maximum effort in rapid resolution.

We operate on a contingency fee basis, meaning you pay nothing unless we recover. Our fee structure varies based on recovery difficulty: 15-20% for straightforward non-payment cases, 25-33% for complex disputes requiring negotiation, and up to 40% for cases requiring litigation or federal agency involvement. You never pay upfront legal fees, and we only succeed when you recover.

The Prompt Payment Act (31 U.S.C. §3901) applies to most contracts involving federal government payment, directly or through prime contractors. However, it has specific exclusions for certain types of contracts and funding. Key question: Is your invoice for work performed on a government contract (direct or subcontract)? If yes, Prompt Payment protections likely apply, requiring payment within 30 days and imposing interest penalties for late payment.

Yes. Scope and quality disputes don't eliminate payment obligations for work actually performed and accepted. Our approach separates the payment issue from the dispute: if you've completed work meeting contract specifications and the customer has accepted it, payment is owed regardless of other disagreements. We pursue immediate payment while documenting dispute positions for potential counterclaim defense.

Miller Act bonds (40 U.S.C. §3131-3134) provide powerful protection for subcontractors and suppliers on federally funded projects. If a prime contractor is withholding payment, you may have rights to recover directly from the performance and payment bonds. This provides an alternative payment source independent of the contractor's financial condition. We assess bond availability and viability for every federal contract recovery case.

Prejudgment interest is available on most aerospace and defense contract invoices. For federal contracts, the Prompt Payment Act provides specific interest rates (currently set by OMB). For private contracts, California Civil Code §1717 allows interest recovery on contracts with attorney fee provisions. We calculate applicable interest from invoice due date through recovery, significantly increasing total recovery amount beyond the base invoice.

Minimum documentation: (1) Signed contract or purchase order, (2) Invoice(s) with proof of delivery/performance, (3) Email chain showing payment requests and non-payment, (4) Account history showing amount outstanding and payment terms. We typically don't require litigation-level documentation to begin recovery efforts. Many cases start with just invoices and contract terms, and we gather additional evidence as needed.

Yes. ITAR compliance (International Traffic in Arms Regulations) doesn't prevent payment recovery—it affects how we discuss the disputed work in communications. We're experienced in handling ITAR-controlled technology disputes while maintaining compliance with export control regulations. This includes appropriate classification of communications and limiting technical discussion to authorized parties only.

Financial instability creates urgency—earlier action provides better recovery odds. In bankruptcy situations, we pursue claims through bankruptcy proceedings where available and explore alternative recovery sources (performance bonds, parent company guarantees, insurance). For government contracts, federal agency payment authority may provide recovery paths independent of contractor financial condition. We assess all available recovery strategies regardless of debtor financial status.