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Blanket Contract for GC

ColoradoCollections Construction Contract

We are doing a slew of detach and resets for a roofing company. They are set up to pay 40% of the job cost once we have detached the system and the remaining 60% upon re-installation. We are having payment issues with the remaining 60% balance on some jobs. Is there a generic/general contract that we are able to send them? I do not necessarily want to send a preliminary notice or alert the customer of the roofing company regarding any payment issues- this would be a document that would be signed by the contractor only, for now. Does Levelset have anything along those lines?

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Sep 25, 2019

It is generally a good idea to have a written contract when performing any construction work. Having a clear understanding of the work to be performed and providing a clear outline of payment terms can be invaluable to making sure a project runs smoothly. A free simple construction contract template can be found here, but it is always a good idea to have contracts tailored to specific use cases by a local construction attorney who can take a deeper look at the particular issues. In addition to starting projects off on the right foot with clear and fair contracts, there are other documents (outside of the mechanics lien zone) that may be sent in an effort to urge quicker payment. Invoice reminder documents, and demand letters requesting payment pursuant to a state's prompt payment laws are available through the Levelset platform, and can be sent when payment is not coming as quickly as desired.

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Sep 25, 2019

When unpaid for construction work, subs and suppliers' best tool for payment recovery is usually to leverage the mechanics lien process. But, in some situations, they'll want to avoid the mechanics lien process and try to work things out business-to-business without ever involving the property owner. Levelset has actually written about some options in this arena before, in this article: Don’t Want to File a Mechanics Lien? Here Are 5 Other Options. In that article, we discuss some potential options outside of the mechanics lien arena - like using a promissory note, a personal guarantee, or joint checks. And, having a customer agree to something like the options described in that article might help to recover payment without bringing in the property owner. Unfortunately, however, Levelset doesn't currently have much in the way of these documents. Note, though, that the mechanics lien process was specifically designed to help construction businesses - even when those businesses aren't in direct contract with the property owner. And, while subcontractors may prefer to avoid using that process (I get it - nobody likes mechanics liens!), at least leveraging the process can go a long way toward getting paid. This is true even when the claimant has no intention of actually pursuing a lien claim. Sending a document like a Notice of Intent to Lien can help add additional pressure on a customer to make payment since owners will want to avoid liens on their property - especially when they're current with payments to their contractor. For more on how a Notice of Intent to Lien can be leveraged into payment without actually pursuing a lien claim: What Is a Notice of Intent to Lien and Should You Send One?

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