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In the construction industry, keeping a close eye on your lien and bond claim deadlines is critical to secure your right to payment. Missing these deadlines could be the difference between payment and non-payment. Here’s the problem: Determining when the clock on these timeframes begins to tick isn’t always that clear. A recent Court of Appeals case helped clarify when exactly the deadline to file a Washington bond claim is triggered. Table of Contents Washington…
The state of Arizona has various provisions and notices that must be included in any construction contract over a certain dollar amount. Not only that, but there are additional requirements for certain types of residential construction projects as well. Let’s take a quick look at the information you need to include in your next Arizona construction contract. Table of Contents Arizona construction contract requirements First and foremost, you should always get a construction contract in…
New York City recently approved the design-build method of project delivery for New York City public construction projects. This is good news for contractors and New Yorkers alike, as there’s been a recent need to streamline infrastructure projects within the city limits. Let’s take a look at what the design-build method is, and how the NYC Public Works Investment Act will change how public works projects are delivered. What is the design-build method? Under traditional…
When cash flow becomes a problem, you need options to help get cash coming in. It doesn’t matter how much you invoice, it’s the lack of payments that’s the issue! Bank loans, lines of credit, and credit cards are some options you can consider. But they can take a long time to process, require a credit check, and often require collateral. Construction invoice factoring might be the solution you’re looking for. We’ll look at what…
If you are working as a prime contractor on residential construction projects in Florida, the law requires that you include certain clauses and notices. Failure to do so can kill your ability to file a mechanics lien. Plus, it can open you up to potential fines and other penalties. Let’s take a look at everything you must include in a Florida residential construction contract. Table of Contents Florida residential construction contracts Many states have various rules…
In the construction industry, it can be hard to access cash when you need it. Many small contractors don’t qualify for a business loan or line of credit from the bank, and credit cards are an expensive option. Invoice factoring provides a middle ground, offering cash to contractors backed by the value of their unpaid invoices. If you’re considering factoring for your construction business, you’ve probably heard of spot factoring and contract factoring – the…
Arbitration clauses are a useful tool to resolve disputes without having to resort to litigation. Contractors and owners alike should be aware of these clauses to ensure they know how to enforce their rights in case something goes awry. The requirements for an enforceable arbitration clause in New Jersey are particularly strict. A recent NJ Appellate Court decision emphasized how specific a construction contract’s arbitration clause must be in order to be enforceable. Table of…
If your construction business needs cash, but is looking for an alternative to a bank loan or credit cards, invoice factoring could be a viable solution. As with any financing arrangement, it’s important to understand the cost of factoring and its components. In this article, we’ll give you a breakdown of the costs of factoring an invoice, and how those costs are calculated. Table of Contents Why contractors use factoring When a construction project…
A new bill has been introduced in the Colorado legislature this month under the name SB 20-138. This bill will potentially amend the current statute of repose for claim regarding construction defects. If implemented, these changes will have a serious impact on the timing and scope of defect claims in the state of Colorado. Table of Contents Changes to Colorado construction defect laws The bill, introduced by Colorado Senator Robert Rodriguez, will make some…
Alabama mechanics liens are granted priority over all other encumbrances on the property that pop up after the commencement of work. However, this isn’t always that clear-cut. The Alabama Supreme Court recently issued a judgment dealing with the priority of mechanics liens against future advance mortgages. Table of Contents What’s a future advance mortgage? A future advance mortgage is a line of credit secured by a piece of property. It’s typically used for home construction…