Construction Archive

Lien waivers play an important role in construction credit, marking progress throughout a project and managing lien rights along the way. Such a standard form pops up so often in a construction creditor’s day-to-day that it becomes easy to miss predatory language that can put your business in an uncomfortable position.  

Lien waivers have become increasingly vital in the construction credit world, as they mark payment throughout a project and track lien rights. With each agreement signed, creditors need to be careful that they are not leaving their company vulnerable to outsized risk by carefully reading the terms of each agreement.

When it comes to construction credit, there is nothing more critical, or complex, than contracts. With so many unique terms and contract language shaping each project, it is important that credit professionals know what’s headed their way at the onset.

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 ba…

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 righ…

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 debts…

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 cre…

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 credito…