How contractors can avoid delays in federal disaster grant payments

Payment delays can derail recovery. Here’s how contractors can improve documentation and coordination to get paid faster.

Two questions to ask

• What can contractors do to avoid payment delays in federal disaster grants?
• How can better coordination with grantees improve outcomes?

Timely payments under federal disaster grants require careful planning, coordination and execution by grantees and subgrantees, but really starts with contractors. Delays in payment processing can hinder disaster recovery efforts, while compliance missteps can lead to audit findings and funding challenges. The following steps outline practical steps to streamline payment processing and improve documentation quality.

1. Review draft contracts before executing for pricing and invoicing clarity

Before executing contracts, review all terms carefully to confirm that clear pricing, invoicing requirements for deliverables and performance, and required federal provisions are included. A clear and comprehensive contract reduces the effort required for review and minimizes ambiguity throughout the process.

2. Hold kick-off meetings to align on invoicing requirements

Request kick-off meetings to clarify invoicing expectations, including the required level of detail and supporting documentation. Agreeing on clear guidelines from the outset reduces revisions, expedites payment processing and establishes communication channels.

3. Designate an experienced accountant to oversee invoicing

Contractors should assign a detail-oriented accountant to manage invoicing and financial documentation. Having an experienced professional in this role who can support compliance with contractual and federal requirements can help minimize payment delays.

4. Conduct quality reviews before submitting invoices

Contractors should implement a structured quality review process before submitting invoices. Every charge must align with contract terms, and sufficient documentation should clearly support the requested payment.

5. Align on travel cost approvals and documentation

Travel-related expenses often require special attention to detail. To avoid reimbursement delays, all parties should agree on approval processes, required documentation, cost standards and eligible expenses before travel occurs.

6. Train personnel on invoicing and time tracking requirements

Regular training of the people doing work under the contract promotes their understanding of the client’s invoicing procedures, time tracking expectations and documentation standards.

7. Invoice on a regular schedule and track submissions internally

Submitting invoices timely and on a consistent schedule improves workflow planning and prevents bottlenecks in payment processing. Contractors should also maintain their own internal invoice tracking system to monitor submission dates, amounts and payment status. Regular invoicing helps establish a rhythm for reviews and approvals, reducing last-minute surprises.

8. Respond promptly to requests for information

Delays often result from missing information. Contractors should have adequate staffing to respond quickly to inquiries and provide necessary clarifications to prevent extended payment timelines.

9. Proactively monitor budgets and line items

Contractors should actively track budgets and contractual line-item limitations. If a change order is necessary, flag the issue early to prevent exceeding contract limits and causing delays.

10. Discuss unorthodox or one-off items in advance

For nonstandard expenses, discuss the item as a team before incurring costs. Obtaining guidance and documenting rationale ahead of time facilitates faster approvals and strengthens compliance with oversight requirements.