This week’s Construction Financial Manager Review broadly addresses recent developments and topics of conversation in the construction industry. We try to provide you with major headlines and interesting insights to keep you on the cusp of industry news. We hope you enjoy this week’s review and would love to get your feedback.
Happy weekend,
Scott Wolfe
zlien CEO
What We’re Reading
Key Articles from Across the Web This Week
Buy America requirements: A boon for the US economy or a bust for construction firms?
Buy American — its sounds great, right? After all, what’s wrong with requiring businesses, especially those using federal dollars, to spend their money here at home? As it turns out, some construction industry groups claim the rules intended to help American manufacturers and suppliers could be hurting construction companies as part of the deal. Read the full article on Construction Dive.
An exciting history of drywall
Who would have thought the history of drywall would be so fascinating? Learn where this material originated and how it has become one of the most commonly used elements of modern construction. Read the full article on The Atlantic.
Navigating the muddy waters of mechanic’s liens and payment bonds
More than one subcontractor or material supplier has lost money for nonpayment on construction projects. Because there are often a flurry of bonds you become party to when taking on a project, you might incorrectly assume you have recourse other than litigation when you don’t get paid. But subtle wording in bonding documents, strict requirements for filing mechanic’s liens, and evolving case law and state statutes can leave you out in the cold. Read the full article on The Jobsite.
Strategies to increase your construction business revenue
If you’re interested in maximizing your profits and getting the right amount of profitable jobs, the seven tips in this construction profits guide should give you insight into what you can do to run a highly profitable construction business. Read the full article on Bplans.
Advocates reaffirm value of formal partnering for project teams
Many recent trends in construction aim to improve teamwork: collaborative delivery methods, lean construction practices and virtual design and construction. But those tools and processes, in and of themselves, do not ensure excellence, says Jim Eisenhart, president of Ventura Consulting Group Inc. Read the full article on ENR.
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What We’re Writing About
Recent Articles by zlien Relevant to Construction Finance
Construction Payment and Financial Risk: A primer
The way that payment works in the world of construction projects is unique. The credit heavy nature, the high number of businesses involved, and the lack of visibility into who is doing what work, make payment issues all-the-more likely for parties both at the top (lenders, property owners, general contractors) and bottom (subcontractors, material suppliers, equipment lessors) of the chain. If you’ve experienced late payment for construction on supply work (or non-payment), you’re not alone. Keep reading to learn what makes construction payment so complicated, and how to avoid these issues. Read the full article.
What is a mechanics lien on a house?
A mechanics lien on a house is a legal security interest in the title of the property claimed by a party who provided labor or materials to improve the property as payment for their work. Mechanics liens – also known as construction liens or materialman’s liens – exist to protect contractors, material suppliers, equipment lessors, and other parties who perform construction work from nonpayment. Read the full article.
What is a Surety Bond?
A surety bond claim is a claim made against what amounts to a pile of money that has been set aside for the purpose of ensuring the parties on a construction project get paid. Since certain properties cannot be liened, a bond is obtained to provide a similar type of security for the project participants. Read the full article.
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