payment Archive

Top Ten Payment Myths

Many in the construction industry fall prey to these payment myths – and encounter collection problems as a result. 1. “Don’t worry about it, we can always lien.” Just filing a lien does not convert an unpaid receivable into cash. There must be equity in a property to collect. 2. “We don’t care about anyone […]

Time for Change: Why the practice of retainage is in need of significant reform.

Why Does Retainage Exist? As subcontractors know all too well, retainage is an owner’s or higher-tier contractor’s practice of holding a predetermined percentage from each progress payment to the next-lower tier of subcontractors, and releasing the retained amounts only when a milestone such as “substantial completion” is reached. This practice has a dramatic effect on […]