Construction Trust Fund

Here, you can find all the Levelset articles about construction trust funds. Construction trust fund statues are state laws that protect payments on construction projects.

Construction trust fund statutes place trusts on payments made to a contractor or subcontractor on a project. This way, the contractors have to hold on to the funds to make sure the subs or suppliers get the payment they’ve earned. When construction trust fund statues are in play, the contractors holding onto the funds cannot use them for any purpose until all claims have been satisfied, including overhead expenses.

Construction trust fund statues differ from state to state. For example, in Arizona, there’s a trust fund statute that only applies to owner-occupied residences. In Colorado and Oklahoma, the statute only applies to funds that are potentially subject to a mechanics lien. It’s plain to see, then, that trust fund statues in Colorado and Oklahoma don’t apply to public projects because you can’t file a mechanics lien against a public project in the two states.

Construction payment is complicated, and construction trust funds are complicated too. If you need help with construction trust funds, you can browse the articles below. If we haven’t written about your concerns yet, you can always refer to the Expert Center to ask your question for free. After you ask your question on the Expert Center, you’ll get a personalized answer from a construction attorney or other payment specialist.

With a little bit of research and time, you can learn how to use construction trust funds to get paid.

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