Getting job information from resistant customers 

Construction credit managers know the importance of a completed job information sheet and the added protection the sheet offers by making the preliminary notice process easier. While the benefits are clear to those in credit, customers may not understand why they need to complete them. 

Why it matters: The details provided from a job information sheet are essential for credit managers to file and perfect a lien, but customers are not always forthcoming about completing it. When faced with resistant customers, there are steps to take that might make the process easier and avoid delays.  

“Every week, usually every day, we get at least one person who’s pushing back on completing job information sheets,” said Deana Reynolds, director of credit for Edges Electrical Group (Sacramento, CA). “Sometimes, it’s because they don’t have all the information or they may have gotten a contract from the general contractor and never asked who the property owner is, which we would need to know for the preliminary notices.”  

Customers may push back because they don’t understand the role of preliminary notices. To convince their customers, credit managers can present the process as beneficial to the customer as they embark on the project as partners. “I like to explain to them that this is not a lien; it is just a notice,” Reynolds said. “And by doing our preliminary notices and securing lien rights, we can be a much better partner to them. Meaning, if something goes wrong where maybe our customer isn’t getting paid by the general contractor, I can step in and be the bad guy, which allows my customers to keep their relationship with the general contractor because they won’t be the ones saying no.” 

Even if you’re a few weeks out of sending any preliminary notices, it is best to be proactive to ensure that if a customer is hesitant, there is still time to work with them. “It’s much easier to get the information early on as opposed to when an order is going out and we’re trying to collect on the back end,” said Angie Juarez, CBA, credit manager for C&C Wholesale Distributors (Dallas, TX). “That usually doesn’t go over very well.”  

While job information sheets are a mainstay in the construction field, credit managers are often met with resistance from smaller customers. “We mostly see resistance from small or medium sized customers, because larger companies usually have administrative staff that will handle those forms,” said Ben Davis, chief financial officer for Metal Panels (Tulsa, OK). “They might say they’re not working in the office, that they don’t have time to fill out a job information sheet and that it is not convenient for them. There are companies that work on referrals and don’t have time in between projects, so I do understand where they are coming from.” 

To meet these customers where they are, credit and sales teams can make slight changes to their processes to make it easier for customers. 

Making the job information form easily accessible. “We worked with our marketing team to get our job information sheet as a submittable form on our website, so customers can submit it on their phone even,” Reynolds said. “They just go right on our website and fill it out, submit it and it comes right to our credit department so we can set it up on the same day.”  

If a customer says they’re too busy, meet them in the middle. “I tell our salespeople, who often hear from customers that are too busy, to gather information from them over the phone so that they can fill out the sheet on behalf of the customer,” said Davis. “Then, when we send the confirmation over, we ask them to confirm that the address, contractor and all the other information is correct.” 

Teach customers the role job information plays in securing lien rights. When customers understand the lien process, it is easier to stress the importance of sharing information about the project. “This year, we’ve started putting on seminars and inviting customers where I teach them about lien rights,” Reynolds said. “I assure everyone that I’m not an attorney and this is not legal advice before sharing what I have learned in my years in construction credit about how lien rights work, what information is required on the job information sheet, what is optional and the difference between public works and private jobs. I just go through the whole process from beginning to end, including deadlines and that seems to be really popular.” 

Despite a credit manager’s best efforts, some customers may outright refuse to complete a job information sheet. It is important that credit departments establish a threshold for how much credit they are willing to extend with or without a completed job information sheet.   

The bottom line: Construction creditors know how critical job information is when embarking on a project, so it only makes sense for procedures to prioritize completed job information sheets. To best minimize customer resistance to filling out these forms, processes around gathering job information should be continuously reevaluated and streamlined.