How Construction Creditors Can Stay Protected Amid Labor Shortages

Regardless of the type of project, payments are always just around the corner in the construction industry and often driven by project deadlines. According to recent reports from Dodge Data & Analytics, construction's struggles to maintain a solid labor force have created an increase in project delays, possibly marking the beginning of a domino...
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When Creditors Lien on a Lease, the Traditional Lien Process Does Not Apply

When beginning the process of extending credit to a customer in construction, several caveats must be considered: Which state laws apply to the job, who are the people involved in the transactions, etc. In the process of obtaining job information and beginning to file a lien, oftentimes creditors forget a crucial element: whether the lien must be f...
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Kentucky Joins 24 Other States in Banning Government-mandated PLAs

Kentucky Governor Matt Bevin recently signed off on a House bill that will prohibit state and local government agencies from "forcing bidders to sign on to project labor agreements (PLAs) for public work projects," according to an article by ​Construction Dive. ​This now makes Kentucky the 25th state in the U.S. to enact a law that will ban governm...
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Recent Washington Court Decision Examines Lien Claim, Part II

Without a solid explanation of how a lien might actually be considered "frivolous" under the statute, the court focused its examination on whether the lien claim in Woodley v. Style Corp. d/b/a Servpro of Shoreline/Woodinville, No. 77352-6-I (Wash. Ct. App. Feb. 11, 2019) was "clearly excessive." For this analysis, the court considered the dictiona...
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Recent Washington Court Decision Examines Lien Claim, Part 1

On Feb. 11, 2019, Division One of the Washington Court of Appeals issued an opinion in the case of Woodley v. Style Corp. d/b/a Servpro of Shoreline/Woodinville , No. 77352-6-I (Wash. Ct. App. Feb. 11, 2019). The case highlights the care that should be exercised in filing a lien claim for services furnished to improve a condominium and the conseque...
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Creating a ‘Conduit Relationship’ to Avoid Construction Payment Mishaps

The business-to-business (B2B) credit process is fairly similar across various industries: A grantor provides credit to a debtor for business or commercial purposes. While this definition, found in NACM's Principles of Business Credit , extends to the construction industry, project owners often encounter additional hurdles that, otherwise, aren't a...
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Gains in Construction Input Prices Unlikely in Coming Months

The first two months of 2019 proved kind to the construction industry, where input prices increased monthly and annually. However, if the predictions of Associated Builders and Contractors (ABC) Chief Economist Anirban Basu are true, the sector will experience different results in the coming months. Construction input prices have dwindled over the ...
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The Often-Overlooked Protection Provided By a Statutory Payment Bond Under Chapter 53 of the Texas Property Code

Owners of construction projects are often surprised to learn that they are required to withhold 10% retainage on private construction projects in Texas. Failure to withhold 10% can result in liability up to that amount. [1] Similarly, owners often continue to pay the general contractor after receiving a lien notice with fund-trapping language which...
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Two Colorado Construction Projects in Peril

A pair of Colorado construction projects hundreds of miles apart are coming under fire as is the case with many construction projects no matter the location. One is facing thousands of dollars in unpaid bills and is set for the courtroom, while the other recently had its noteholder withdraw foreclosure. According to the Longmont Times-Call , there ...
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What Goes Into a Protective Subcontract?

A solid business relationship in the construction industry begins with a subcontract that establishes clear parameters between all involved parties. Before any general contractor (GC) or subcontractor (sub) moves forward with a collaborative project, each party must define their objectives and duties throughout the course of the project in addition...
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