Tag: Construction

Contract review is a core responsibility for credit professionals, requiring careful attention to detail and consistency across agreements. However, when managing high volumes under tight timelines, even well-established processes can leave room for key terms to be overlooked.

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.

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.

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.