Construction Archive

In the high-stakes world of construction, securing timely payment is both critical and notoriously challenging for material suppliers, where delayed funds can jeopardize entire operations. To avoid these pitfalls, credit professionals can enforce their lien and bond rights on a project. 

Lien rights are the backbone of any risk mitigation strategy in the construction credit field. There is a lot to consider when filing a mechanic’s lien, and it can be a bit of added stress for credit managers still getting their footing in the industry. However, it is a crucial step in protecting your interest and mitigating risk during construction projects. 

In the construction industry, getting paid can often be a waiting game. Any disruption in the payment flow—from the general contractor to the material supplier—may lead to significant delays in both payment and the overall project timeline.

Credit managers working in construction know all too well the importance of securing their lien rights. They also know how different these rules can be from state to state, making it all the more important that credit managers take the time to learn the ins and outs of these statutes and how they can vary depending on where you are operating.  

The supply chain, consisting of individuals and companies involved in the production and delivery of products to customers, can be very delicate. A single disruption has the ability to trigger a ripple effect, significantly impacting various industries worldwide. Material shortages, such as those affecting lumber, metals and food, are among the factors influencing the supply chain. 

As the construction industry prepares for the effects of Present-elect Donald Trump’s economic policies—such as tariffs on imported materials, reduced tax rates and deregulation—credit managers face both opportunities and risks. While these measures could stimulate industry growth, they also have the potential to drive inflation, increase interest rates and escalate government debt.

For credit managers working in construction, being proactive when it comes to fraud can be hard. With so many different schemes orchestrated to swindle your company out of materials or money, it can be a real nightmare for credit managers to know what to look out for, especially as fraudsters adapt.

In the construction world, a mechanic’s lien is a vital legal instrument protecting laborers and suppliers. Without it, contractors and subcontractors lose legal protection, resulting in significant losses. Several factors influence lien rights. However, can other contracts or agreements, such as a non-disclosure agreement, override your right to file a notice or initiate legal proceedings?