Risk ManagementMore Like This

Financial risk on construction projects is a hot potato. Nobody wants to get burned by it, and everybody is always trying to toss it to somebody else.

Why? Because construction projects are inherently complicated and difficult to complete without hiccups. Weather intervenes, or a single workmanship dispute erupts, and a domino effect sends delays and payment dilemmas rippling through the entire job. Continue »

Asset ProtectionMore Like This

Financial risk and construction goes hand-in-hand, and the further away a company is from the project developer, the more risk it shoulders. The scope of financial risk on a construction project is a huge topic contemplating under-funded or underbid projects, contractor default problems, misappropriation of project funds and more. Following are five ways companies can reduce or manage these financial risks. Continue »

Surety BondingMore Like This

In most cases, deciding whether to file a payment bond claim or a mechanic’s lien claim is simple because only one option is available. On unbonded private projects, the general rule is unpaid subcontractors or suppliers can file a mechanic’s lien against the project jobsite. A mechanic’s lien claim asserts a security interest in the title of the property itself. These claims typically must be filed with the recorder’s office in the county where the property is located, and the claims usually are asserted against the owner’s interest in the property. Continue »

Best PracticesMore Like This

The mechanic’s lien is a unique legal remedy available to the construction industry to secure and collect on debt that arises from services furnished to a construction project. Each state has specific rules about when the lien must be filed (see Lien Deadlines) and who has the right to file. This general rule stands across the country: Entities that furnish labor, materials, equipment or services to a project where real property was being improved in any way are entitled to secure that claim by filing a lien against the property, if the document is filed relatively soon after furnishing. And what is the exact value of a mechanics lien? Why should one be filed? How exactly does it work to get the claimant paid? Continue »