Tag: Construction

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.

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.

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.

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.

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.

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.

Gathering job information for a construction project is critical to the work of a credit manager, collecting pertinent information on the customer and the key players in the project so that you understand the degree of risk incurred as you embark on a project. While this process is intrinsically tied to the work and concerns of a credit manager, the responsibility of gathering information can also fall on the sales team.

California Governor Gavin Newsom signed SB 440, or the Private Works Change Order Fair Payment Act, into law on October 10. The law, which goes into effect at the start of 2026, introduces a newly structured process of resolving change-order and time-extension claims on private works of improvement.

Lien and bond rights are essential tools for protecting payments in the construction industry. Whether you’re a general contractor (GC), subcontractor or material supplier, these legal rights provide leverage when payments are delayed or withheld. However, these rights and the processes to enforce them vary significantly from state to state.