In a quick-paced world, getting paid promptly is key to many construction businesses. In order to do so, preemptive actions on the front end of your relationships with contractors and general managers is best. Here are a few quick tips to help you get out in front of the curve towards successful collections. 1. Initially, get as […]
payment Archive
Price Escalation Due to Steel Tariff
There has been a lot of discussion lately about President Trump’s plan to assess tariffs of 25% on steel and 10% on aluminum. Construction materials use a lot of steel and would be greatly impacted by cost increases that will likely flow from such tariffs. Regardless of where construction contractors and subcontractors stand on this […]
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 […]