This is a collection of the Levelset articles about collections in the Construction industry. The term collections refers to the multitude of methods that contractors and suppliers use to secure payment after a construction project as well as the laws and regulations that govern payment in construction.
Payment speeds are notoriously slow all across the construction industry. The long list of rules, the length of the payment chain, and the complex nature of construction projects themselves are just a few reasons why this is true. As expected, there is a long, long list of collections methods that all tiers of construction professionals can employ to free payment up if they are left unpaid after the work is done. They most commonly take the form of notices, claims, and liens; however, the term collections also spans a wide array of legal action after the project ends and preventive measures and best practices before the project begins.
If you need help with collections in the construction industry, you’re off to a great start. The articles below cover a wide range of collections topics full of helpful advice, guides, and information unique to almost any circumstance. If you can’t find what you’re looking for, you can always ask a question for free on the Expert Center, a page that allows you to connect with construction attorneys who can provide you with advice regarding collections.
The coronavirus is affecting every facet of the US economy, especially the construction industry. With mandatory stay-at-home orders now in place across the country, construction in many places has literally...
With the construction industry in crisis over COVID-19, business owners and field workers alike are nervous. Even in places where construction is considered an essential business, developers and lenders aren’t...
Editor’s Note: This is a guest article from the Executive Management Team at Rauch-Milliken International, Inc. about the challenge of managing collections on overdue accounts during coronavirus. View more construction...
Getting paid in construction can take a long time. It isn’t unusual for payments to take 60 days or more. When cash isn’t flowing into your construction business as quickly...
For contractors, a good credit management policy goes a long way to reducing the risk of non-payment. It should set guidelines for extending credit, and include a well-written collections policy...
Where is all my cash? You might have asked yourself this question before. Many contractors find themselves being profitable but still stuck with negative cash flow. Why is that? You...
Contractors sometimes have to wait a long time for payment. A demand letter can be a powerful weapon in your arsenal to get paid faster. If you are waiting on...
Short Answer: Beware checks with “Payment in Full,” “Full and Final Settlement” or similar language written in the memo line or endorsement area. When these “Payment in Full” checks are...
When an account is unpaid and overdue, you do not want to rush into filing a lawsuit. Litigation is an expensive, and oftentimes unnecessary remedy (but, don’t let your claims...
Many of our customers that fall into the “in-house category” simply realize that lien rights management is better left to the experts like zlien, and they could be doing far...