Construction Payment Blog

Signal Peak Silica (SPS), a supplier of frac sand used in fracking, currently owes at least $2.1M in unpaid construction bills. The outstanding invoices have piled up since May for work completed at the company’s Poteet, Texas facility, according to multiple lien affidavits. As of May, at least four different contractors have filed claims pursuant to Texas’ mechanics lien laws against Signal Peak Silica, which is headquartered in Houston, TX. Beyond the SPS plant in…
An increasing number of states are legalizing marijuana use, either recreationally or for medical purposes. This has led to a burgeoning industry, including growing, manufacturing products, and selling those products to consumers. Construction companies are being asked to participate in these projects on a regular basis now – some businesses even cater exclusively to the industry. However, the nature of the business can make these projects more risky than traditional construction projects. Here’s what contractors…
During a foreclosure, understanding lien priority is critical, since it determines who gets paid first – and who might not get paid at all. Most unpaid construction parties have the right to file a mechanics lien claim on the property. But that doesn’t always guarantee payment. There are different types of liens, and some are more powerful than others. If you didn’t know, there’s a general order for handling liens, though each state has…
This week, Levelset announced the winners of the 2020 Excellence in Managing Payments award. The award recognizes 20 of the largest construction companies in the US who have a demonstrated commitment to fair payment practices. These construction companies are all on the Engineering News Record 400 list of the largest contractors in 2020. Managing payments on a construction project is hard work. General contractors must collect payment applications, lien waivers, and change orders from…
Anyone working in the construction industry knows, that a mechanics lien is an incredibly powerful tool to help you get paid. It grants the claimant an interest in the property. If payment isn’t made, the claimant can force the foreclosure of the property to pay off the debt. But the priority of your claim will ultimately decide if the foreclosure is even worth it. The Florida Court of Appeals recently decided a case where a…
The state of Florida is preparing to make some significant changes to employment practices that contractors need to be aware of. The changes in question are the addition of the “Verification of Employment Eligibility” statues requiring the use of the federal E-Verify system before hiring any new employees. The law goes into effect for both public and private employers  in 2021. Florida E-Verify requirements E-Verify is a federal government online system that confirms information provided…
According to the lien affidavit, subcontractor United Builders Service is currently owed $1.4 million from The Ridge Pinehurst, a recently completed retirement and assisted living facility located 12 miles southwest of downtown Denver, CO. The mechanics lien was affirmed on May 13, 2020, with the Jefferson County clerk’s office. On June 22nd, subcontractor Heathen Woodcraft, Inc. also filed a mechanics lien pursuant to Colorado statutes against The Ridge Pinehurst, claiming they are owed $14.9k…
On June 25, 2020, Iowa Governor Reynolds signed SF458 into law, giving additional protection to residential contractors in the state of Iowa. Under this new legislation, Iowa lien claimants who successfully foreclose their mechanics lien claims may be awarded attorney’s fees for residential homestead projects. Foreclosing a lien on residential projects in Iowa Mechanics liens are incredibly effective was to ensure you get paid what you’ve earned on a project. And, sometimes the dispute can…
If you are past the lien filing deadline or haven’t sent a preliminary notice in a state where it is required, you will probably be considering filing a construction lawsuit as the next step in collecting your unpaid construction payment. When looking at your options, it is good to have information about them before you start the process.  Lead Senior Associate Attorney Courtney Stricklen from The Cromeens Law Firm based out of Houston, Texas, answered…
If you are on a project where the property owner or GC is requiring a sworn statement with your payment application, it’s important to know how to complete one accurately. Providing inaccurate information can not only delay your payment, you can also be punished legally for it. We’re going to look at what a contractor’s sworn statement is, why they are used, and what information you need to complete them accurately. What is a contractor’s…