Construction Payment Blog

Schedule delays almost always lead to payment delays, and the Coronavirus has created a literal tsunami of construction project delays, across the country.  If you are experiencing delays due to coronavirus, you should be filing mechanic liens on every active project. Right. Now. Coronavirus delays could sink contractors financially A mechanics lien is the best protection against late or non payment in these confusing COVID times. Many contractors and suppliers are effectively shut down or…
With the construction industry in crisis over COVID-19, business owners and field workers alike are nervous. Even in places where construction is considered an essential business, developers and lenders aren’t investing in a lot of new construction right now. Everyone in construction is afraid of what the future holds – and whether they will make it through to see the other side. We asked 6 experts in construction finance for advice to help…
States, counties, and cities across the United States continue to implement safety precautions to slow the spread of the coronavirus outbreak (COVID-19). The coronavirus is affecting construction projects, and many are wondering if they can still work. Here, we’ve collected the orders issued within the state of California to determine whether construction is considered essential business in California. Federal guidelines for essential businesses On March 28th, the Cybersecurity & Infrastructure Security Agency (CISA) issued an…
The COVID-19 pandemic has been upending construction projects around the country, suspending them or forcing them to shut down. If you’re working on a project that’s experienced this, be sure to take that into account when securing your mechanics lien rights. There are a handful of states where the cessation of labor can affect your lien filing deadlines. Cessation of labor & lien filing deadlines As the country continues to deal with the spread…
The coronavirus pandemic is taking a grip on the construction industry. It’s making it more difficult to get supplies, to complete projects, and most importantly, it’s getting harder for companies to get paid. Sending preliminary notices to the owner, GC, and even the lender can go a long way when it comes to getting paid during COVID-19. By sending these notices on all your jobs now, not only are you presenting…
The coronavirus has already upended construction projects across the US. Now, with the “deepest recession on record” looming, many contractors are expecting to take a hit on their profit margins. The thought process seems to be one of “I will profit a few dollars less, but I will still have work.” While on the surface, that may seem like an easy fix to a complex problem, it could actually do more harm than…
As the COVID-19 pandemic continues, it’s steamrolling all sorts of would-be stable businesses and taking no prisoners. The reality is that if COVID-19 hasn’t affected your construction company yet, it’s only a matter of time before you start to feel its impact. Most likely, you’ll notice jobs will be delayed and eventually canceled. But even more devastatingly, you’ll see payments screech to a halt. It may feel like you’re on an island with no…
Even before the coronavirus upended construction, and effectively threw a wrench into the engine of the US economy, experts were predicting that a recession was just around the corner. If that was true, COVID-19 certainly sped things up. While the construction industry hasn’t been in the economic storm’s direct path, it is definitely feeling the effects. While in some states and cities, construction has been deemed “essential business,” in others, projects are being delayed…
In an economic recession, it becomes even more important to know exactly how much money you’re spending and making on every job. If you’re aware of every dollar in play, you’ll be able to analyze your margins and figure out what’s been profitable for you and what’s been drawing on your cashflow. Proper job costing analysis will help you identify the profit killers and maximize the time spent landing — and completing — jobs that…
As the country continues to struggle with the coronavirus pandemic, construction companies are struggling to deal with the challenges COVID-19 presents. Many industry professionals have been warning of potential delays, disruptions, impacts, and more on construction projects for the foreseeable future. There are a number of different things construction professionals can do to protect their businesses. But with most project challenges, it all starts with sending a notice. Subcontractor notice of COVID-19 related…