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A Constant Stream of Helpful Content on Getting Paid in Construction
The Ins and Outs of Retainage in Construction
Retainage is a unique feature of construction. Unlike a mechanics lien, retainage is a controversial topic among construction participants. Not all contractors, subcontractors, and material suppliers are keen about retainage, although it remains to be widely used across all 50 states. This article will walk you through the basics of retainage in construction, what it seeks to do, and how it affects different construction stakeholders.
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How to File a Mechanics Lien in Illinois
Illinois has its own rules and requirements regarding what counts as a valid mechanics lien, and failing to adhere to these rules could cost you your right to receive proper payment. This guide will walk you through the rules and regulations surrounding an Illinois mechanics lien, from protecting your lien rights to ensuring that you follow the best practices when recording a mechanics lien in the state.
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“Should I Sign a Lien Waiver if…” 6 Scenarios That Require Signing a Lien Waiver
Lien waivers are essentially “proofs of payment.” A party who has received payment in a construction industry is therefore expected to sign a lien waiver as a declaration that they are effectively waiving their lien rights. If used correctly, lien waivers can actually protect both the paying party and the party claiming the payment from having to deal with a mechanics lien. Sometimes, however, it is not clear whether signing a lien waiver is the right thing to do. Waiving your lien rights is strong statement to make, so it is not something that should be done in a hurry. Here are six situations in which signing a lien waiver is highly advisable.
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A Trade Credit Guide for Material Suppliers
Trade credit – also known as supplier’s credit or mercantile credit – is a form of financing that allows one business to deliver its services to another business before payment is exchanged. It is a short-term financing option, which means that the outstanding payment is expected to be settled within 30 days or up to 18 months.
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How the Little Miller Act Protects Construction Parties at the State Level
A Little Miller Act is a state-specific version of the federal Miller Act. Its main purpose is to protect subcontractors and material suppliers in government projects by requiring general contractors to furnish surety bonds to the government. Instead of a mechanics lien, a bond claim may be filed by construction parties who wish to recover payment from a delinquent prime contractor.
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California’s “Unconditional Waiver and Release Upon Progress Payment”: A Detailed Guide
There’s very little room for error when signing lien waivers in California. Regulated lien waiver forms are provided by the state, and California statutes require contractors, subcontractors, and other construction stakeholders to specifically use these forms when issuing lien waivers.
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September Construction Insider: US housing starts’ 12-year high, construction job surge, more
This month on Construction Insider: US housing starts rise to 12-year high, lumber mills close down amid trade war, construction jobs increase by 14,000 in August, and more
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Top Insights from Subcontractors on How to Be More Efficient
We already know that, on average, seventy percent of a contractor’s day is spent idling: coordinating tasks, waiting for equipment, and searching for information. Meaning only 30 percent of a contractor’s day is spent doing the real work that drives productivity. For wrench time to improve, contractors need technology that allows them to ditch paper forms and files, communicate in real-time, and compile reports on-the-fly.
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How to Send Construction Preliminary Notices: 4 Methods
The construction industry is notorious for payment disputes and delays so running a construction business means bearing the risk of never getting paid. Contractors and subcontractors must therefore give utmost priority to protecting their legal right to file a mechanics lien—and this process begins with serving the preliminary notice.
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