Lendlease for Subcontractors: Lendlease office building

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If you’re looking for a new general contractor to align yourself with, Lendlease might be on your radar. As one of the largest construction companies in the world, subcontracting for Lendlease very well could be an excellent move for your company. But when it comes to working with a busy general contractor, you need to do as much research as possible beforehand. To help you decide if they might be a good fit for your company, we put together this guide to Lendlease for subcontractors for reference.

Keep reading to learn more about working with Lendlease — one of the largest general contractors in the business. 

Lendlease company overview 

Lendlease is a construction, real estate, and investment company with a history over 60 years long. Headquartered in Sydney, Australia, Lendlease manages projects in the Americas, Asia, Australia, and Europe, making it a truly global company.

Lendlease’s annual reports showed revenue numbers of 13.3 billion Australian dollars in 2020. With that, ENR ranked Lendlease at number 25 of their 2020 Top 400 Contractors

Lendlease works in:

  • Commercial 
  • Hospitality
  • Retail & mixed-use
  • Community building
  • Defense
  • Education
  • Health and scientific research

Before working with Lendlease

Whenever you decide to work with a new general contractor, it’s important to do as much research on the company as possible. After all, GCs prequalify you; don’t you think you should prequalify them? 

If prequalifying a big contractor like Lendlease is a newer concept for your company, Levelset suggests the following steps:

As you prequalify a general contractor, you should expect to find some red flags along the way. Construction is a very fluid industry where delays and complications abound. In fact, not finding any red flags at all might actually be more alarming.

If something about Lendlease’s job history stands out to you, reach out to the company and ask questions. While a slighted subcontractor might offer some valuable information, the company being upfront with you about the issue might be even more telling.

Lendlease’s payment profile

One of the best ways to prequalify a general contractor is to consult a Levelset Payment Profile on your mark. A Payment Profile takes a deep look into the company’s payment history, recent disputes, and complaints. The goal is to offer as much value to prospective subcontractors as possible. 

View Lendlease’s payment profile

At the time of writing this guide, Lendlease has a 55/100 payment score, giving it a C rating and putting it in the top 70 percent of large general contractors. We use payment scores to highlight a company’s payment practices, including on-time and late payments as part of the equation. We compared Lendlease’s history with thousands of other general contractors in order to paint the clearest picture possible.

If you’d like more information about how we calculate contractor payment scores, click here.

Recent payment disputes

Levelset’s goal is to offer as much information and value as possible for subcontractors looking to partner with large GCs like Lendlease. To do that, we’ve taken a look at Lendlease’s most recent projects and the payment disputes that accompany them. The idea is to offer as much unbiased information about Lendlease’s payment dispute as possible. 

As of April 2021, Lendlease is managing several projects suffering from payment disputes, lien filings, and other payment problems. 

Oceanwide Plaza, a project at 1101 S Flower Street in Los Angeles, California, has been the site of some large lien filings. As of August 2020, the project that Lendlease is managing had unpaid claims in excess of $200 million. Lendlease itself filed a lien for $211.7 million against the property owner, Oceanwide Holdings, which could be the root cause of most of these other payment issues:

  • January 2021: Lien filed by subcontractor for $270,546
  • January 2021: Lien filed by subcontractor for $6,009.20
  • December 2020: Lien filed by subcontractor for $3,000,476.42
  • November 2020: Lien filed by subcontractor for $6,764,473.37
  • November 2020: Lien filed by subcontractor for $1,868,215.52

950-974 Market, a project at that address in San Francisco, California, has also seen its fair share of dispute and payment issues. While the length of the project and amount of the liens don’t reach the heights of those at Oceanwide, they’re still worth mentioning to subcontractors.

  • November 2020: Lien filed by subcontractor for $691,750
  • November 2020: Lien filed by subcontractor for $176,176.70

All in all, Lendlease has had over 20 liens filed against the company since April 2020. And, with input from subcontractors across many of Lendlease’s projects, it’s calculated that 82 percent of projects have gone off without a payment hitch within the last 12 months. In 2021 alone, however, that number jumps to 94 percent so far — up drastically from 2020 and 2019’s percentages of 73. 

Getting paid with Lendlease

When you step up to the big leagues, it’s worth understanding how the payment process works to shorten the amount of time it takes to get paid.

Before work starts

At the beginning of most working relationships, most large general contractors require certain pieces of information about you and your company. They typically include:

  • Your W-9
  • The signed subcontract
  • Insurance certificates
  • Any bonding information related to the project

Usually, the project manager on the job will give you a run-down of what else might be necessary.

First payments

Large-scale GC’s like traditional payment documents, like AIA billing. The includes the G702 payment application and the G703 continuation sheet. Lendlease might also require a schedule of values. 

Lendlease will also outline when pay apps are due, but they’re typically on the 1st, 5th, 15th, or 20th of each month. Just be sure that your payment apps are complete and accurate to streamline the process.

Progress payments

Cash flow is critical, so you’ll want to get paid on a regular schedule rather than waiting for the end of the project for a lump sum. If that sounds like a plan, progress payments are the way to go

To apply for progress payments with Lendlease, you should send a completed pay app as well as an updated schedule of values.

Project close-out

The end of the project marks the final payments and project close-outs. Every large GC has its own method for close-outs, but these are the most typical documents:

Be careful as you navigate close-out paperwork: Some documents, like lien waivers, could mean forfeiting your right to a mechanics lien.

Further reading: Do I Have to Sign a Lien Waiver to Get Paid on a Construction Project?

3 tips to get paid on every construction project

There are a lot of moving parts to a construction project, and payment issues happen. The following three steps will improve your chances of getting paid on time.

1. Send preliminary notices

In certain states, subs are required to send preliminary notices on all their projects to preserve the rights to liens. But even in the states that don’t require them, sending preliminary notices is always a good idea. 

Preliminary notices serve as an introduction between your company and the parties cutting checks. In fact, if they don’t know you’re working on the project, chances are you won’t be seeing a check. They also present your company in a professional light.

2. Send other visibility documents

Preliminary notices aren’t the only visibility documents that can speed up the payment process. Sending invoice reminders, notices of intent to lien, and demand letters keep your company’s name fresh in the GC, admin staff, and owners’ minds. Many times, that’s all it takes to spur a payment.

3. Maintain your right to file a mechanics lien

Preserving your lien rights should always come first on any project with any general contractor. A mechanics lien can affect the owner’s financing, the property’s saleability, and cause a stir up the chain. For that reason, there are specific requirements and deadlines you’ll have to meet in order to maintain your rights. 

Understand the rules in your project’s state to make sure you’re preserving your lien rights.