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Construction companies working on a public works project in Massachusetts should be sure to pay their employees the proper prevailing wage rate. Failure to do so will result in not only a violation, but the company’s officers can also be found to be personally liable for three times the amount of money unpaid. A relatively recent case emphasized that, regardless of the reason for failing to pay the proper wage rate, a violation can spell…
.If you’re working in the construction industry in Louisiana, there are some important changes that go into effect in 2020 regarding mechanics lien rights. Here’s a quick reminder of what you’ll need to keep an eye on to ensure you get paid what you’ve earned. Table of Contents Changes to Louisiana mechanics lien laws The 2019 Louisiana legislative session introduced and passed HB 203. The purpose and goals of the LA Private Works Act haven’t…
The average time it takes for contractors to get paid stretches to nearly three months. That puts a lot of strain on a construction company’s accounts receivable (A/R). As a result, contractors often leave money on the table in an effort to collect faster – or, in some cases, collect anything at all. According to the 2019 National Construction Payments Report Survey, the majority (78%) of contractors rarely or ever charge interest on late…
Notices are an important aspect of the construction industry, and crucial to a successful construction project. Sometimes the contract requires notice. In most states, contractors and suppliers send notice to secure their right to file a mechanics lien (or bond claim). This statutory right requires that construction businesses follow the legal requirements closely in order to protect their payment. Laws in many states require written notices to be mailed or served personally. But with “snail…
Cost plus contracts can be tricky. It requires a fair amount of documentation and detailed invoicing, to be sure the contractor isn’t taking advantage of the customer. Failing to do so can cause some serious difficulties in securing payment. Given that, a recent case from Iowa showed that proper invoicing is more important than ever, particularly when enforcing a mechanics lien claim. What is a cost plus contract? A cost plus contract is an agreement…
Intuit Quickbooks is one of the most popular accounting software options for a variety of businesses. Many construction businesses use it because of its ease of use and low cost (it costs from $20 – 45 per month). Quickbooks Online makes it easy to access your bookkeeping data and accounting reports from anywhere and stay up to date. At its heart, it is a general business accounting program, not set up specifically for the construction…
Getting paid on a construction project is significantly more difficult than it should be. Taking steps to protect your mechanics lien rights are a step in the right direction, but most liens can’t be enforced until well after the project is complete. For contractors who are struggling with cash flow, this can seem like an eternity. In these types of situations, one option could be to see if you have the right to…
Where your construction company’s money comes from, and where it goes is called cash flow. Cash flow is valuable information for all business owners, especially for construction businesses. An accurate cash flow projection gives you the knowledge to better predict your cash needs months in advance. In turn, this can help your construction business grow and show you when a problem is coming on the horizon. Cash flow can be a significant problem for construction…
The Pennsylvania General Assembly recently passed what is known as the PA Construction Industry Employee Verification Act, which will go into effect October of 2020. Anyone involved in construction in Pennsylvania needs to be aware of these requirements when hiring employees. Let’s take a look at the specifics under the act. Table of Contents Pennsylvania Construction Industry Employee Verification Act: What the law requires These new regulations effectively prohibit the employment of unauthorized employees, specifically…
As the area’s population grows, construction projects in Dallas are growing to keep up. That can seem like a good thing for construction companies – but periods of growth are actually some of the riskiest for contractors. In fact, subcontractors are three times more likely to fail in a growing economy than during an economic downturn. To make matters worse, Texas has some of the most complex laws governing mechanics lien filings in the US.…