Tag: Construction

The construction industry is a layered ecosystem where giants and startups share the same job site, each with unique risks and rules. In a highly competitive industry, the Disadvantaged Business Enterprise (DBE) Program provides marginalized businesses with a fair opportunity to compete and thrive. However, rising fraud, such as firms posing as DBEs or using certified DBEs as pass-throughs, undermines the program’s purpose.  

Construction projects can be a lot like building a sandcastle at the beach. You start with a vision, the right tools and a solid plan, only to have an unexpected wave crash in and wash it all away. In the world of construction, those waves can come in many forms: permit delays, supply chain disruptions or even a sudden shift in ownership.

As a credit manager, you are likely familiar with the sinking feeling you get after learning a customer has filed for bankruptcy. Whether they are aiming to reconstruct or liquidate their business entirely, customers filing for bankruptcies can send even the most experienced credit managers scrambling.  

Automation has significantly reshaped credit practices by streamlining processes, reducing manual errors and enhancing productivity. In the construction credit space, where efficiency, accuracy and timely decision-making are critical, automation has served as a powerful tool. 

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.

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. 

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.