Construction Archive

In a construction project, many elements come into play: planning, design, financing, materials, contracts, workforce and more. At the end of the day, everyone in the supply chain, from the owner to the supplier, wants to get paid. For credit professionals, the concern is the same.  Why it matters: Credit professionals who understand and enforce their lien rights are more likely to secure payment for construction projects. Florida mechanic’s lien law dictates who can file a lien, which notices …

Gathering job information for a construction project is critical to the work of a credit manager, collecting pertinent information on the customer and the key players in the project so that you understand the degree of risk incurred as you embark on a project. While this process is intrinsically tied to the work and concerns of a credit manager, the responsibility of gathering information can also fall on the sales team.   By the numbers: According to an eNews poll, 52% of credit managers find that gathering job information is a joint effort between credit and sales teams, foll…

California Governor Gavin Newsom signed SB 440, or the Private Works Change Order Fair Payment Act, into law on October 10. The law, which goes into effect at the start of 2026, introduces a newly structured process of resolving change-order and time-extension claims on private works of improvement.   The law, which passed unanimously in the State Assembly and Senate, was championed by contractor advocacy groups that believed the restructuring of the claims process could reduce litigation and help more companies get paid on time. Contractors are praising SB 440 for the fair and…

Lien and bond rights are essential tools for protecting payments in the construction industry. Whether you’re a general contractor (GC), subcontractor or material supplier, these legal rights provide leverage when payments are delayed or withheld. However, these rights and the processes to enforce them vary significantly from state to state.  For the state of Texas, lien laws changed significantly effective January 1, 2022, for projects with original contracts signed on or after this date, primarily streamlining the process for subcontractors and suppliers on private, non-residentia…

Lien laws provide a means for subcontractors, general contractors and suppliers to protect their payment for the work they’ve furnished to job sites. Understanding each state’s unique laws for notice requirements and liens is the best way to secure payment and protect your business. The type of project dictates the procedures that must be followed, therefore the first step when working on a project is determining if you are working on a private or public project. A private job is controlled by private developers, private owners on buildings or even residential homes. A public job would b…

Georgia’s two-step process for pre-lien notices and lien waivers can challenge even the most experienced credit professionals. Missing any key deadline can result in a complete loss of lien rights, regardless of the money owed on construction projects. For example, failing to serve a Notice to Contractor by day 30, even by mistake, can cost you tens of thousands. 

Construction credit professionals know that risk can lurk around any corner, with each transaction posing a threat of late or missing payments. Luckily, there are laws that carve out special protections for credit managers working in construction.  

Embarking on any construction project without a completed job information sheet is risky. Without complete and accurate job information, a company’s ability to secure payment through a mechanic’s lien or bond for their project may be compromised.