Construction Archive

Mechanic’s lien laws are the bedrock of the construction credit field, offering credit managers protection as they await payment during long projects. As credit managers work in multiple states, they will encounter two distinct types of liens: full price liens and unpaid balance liens. While both offer protection, it is critical that credit managers understand what type of lien they are filing. Full price liens secure money for the total amount of work that has been provided by the lien claimant. Liens are not limited to the unpaid funds between the owner and prime contractor. An unpaid …

When deep diving into a customer’s finances, the last thing a credit manager wants to see is a tax lien. While the first instinct may be to tighten that customer’s terms, more research needs to be done into the lien before credit managers can know the exact implications for their ongoing relationship with their customer. Why it matters: A tax lien is a government’s legal claim against a business when it fails to pay a tax debt. Whether it’s imposed by a state or federal government, a tax lien means that the government has the first legal claim to an indebted company’s property and the ri…

Construction credit is a highly volatile business, in which risk is contingent on the project’s progress and outcomes. Cash flows down the “ladder of supply,” a tiered structure that determines when each stakeholder receives payment. With suppliers at the lowest tier, credit professionals are typically the last to obtain funds. To secure payment for work performed, contractors, subcontractors, laborers, suppliers and, in many states, design professionals, may file a mechanic’s lien, or a legal claim against the improved property. By doing so, they enact legal recourse to claim unpaid deb…

The U.S. Postal Service clarified in a Dec. 24, 2025 rule that postmarks reflect when mail is processed at a USPS facility—not when it’s dropped off, accepted at a counter or stamped in a mailroom. Why it matters: In many states, deadlines for filing mechanic’s liens and other time-sensitive documents are tied to the postmark date on the notice. Previously, postmarks reflected the deposit date, giving credit managers a reliable way to time lien notices and contract deadlines. The recent announcement clarifies that postmarking occurs when an item is processed, not deposited, which could c…

In construction credit, money is flowing down the ladder of supply and material suppliers and service providers selling to subcontractors are vulnerable to delayed payments—or worse, not getting paid at all.  The critical first step in effectively managing construction credit is gathering and verifying job information, especially identifying everyone involved in the project. Why it matters: Overlooking those involved in the project during the early stages can be risky, especially when forgetting to notify key players of a preliminary lien notice can compromise a credi…

No matter the industry or region, credit professionals share one common goal: collecting payment from customers. For some, this means establishing favorable terms and conditions. For others, it hinges on building strong customer relationships. Construction credit, however, is far more nuanced.  Why it matters: With construction projects, additional parties and conditional clauses can cause payment delays or legal complexities that make it difficult to secure funds. Depending on the state and project type,&nbs…

The Disadvantaged Business Enterprise (DBE) Program, a federal program that offers marginalized businesses a fair opportunity to compete and thrive in competitive business environments, is being overhauled by the federal government, leaving credit managers working with DBEs in unfamiliar territory. The U.S. Department of Transportation (DOT) issued an interim final rule on Oct. 3, 2025, restructuring their DBE and Airport Concessions DBE (ACDBE). The ruling eliminates race- and sex-based presumptions of social and economic disadvantage. Why it matters: With the new ruling, currently c…

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 …