Category: Construction Payment
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Would Removing Prevailing Wage Laws Lower the Cost of Public Projects?
Before getting too far along, the answer to the title of this post is probably: “not really.” Over the past few years, a few states have repealed their prevailing wage laws on public projects. The expectation was to lower the cost of public projects through a combination of lower wages and an increased number of…
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What is a Dispute Resolution Board (DRB)?
First, let’s note that a Dispute Resolution Board is not the absolute cure for all disputes in the construction industry. Currently, DRBs are usually only used for massive projects. They have been particularly helpful for highway and other large infrastructure projects, as well as other projects that combine public and private resources — a project…
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Do Material Suppliers to Suppliers Have Lien Rights?
If you’re a material supplier in the construction industry, when it comes to securing your payments on a construction project, we have good news and bad news. First the good news: generally speaking, material suppliers do have lien rights or bond claim rights in most cases (though these rights typically come with strict preliminary notice…
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Construction Companies Have a Cash Flow Problem, and Everyone (Even Employees) Is Paying the Price
If you’re the owner of a construction company, cash flow problems likely aren’t anything new to you. According to a recent survey conducted by TSheets and zlien, 1 in 5 construction companies says cash flow is a constant problem. As a result, these companies sometimes have a tough time making payroll, investing in future growth,…
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What Does “Pay-When-Paid” Mean?
In the construction business, everything comes down to the contract. And that’s unfortunate because most of the people who make up the construction industry aren’t lawyers, they’re contractors, builders, and suppliers! They haven’t spent their professional lives learning how to interpret contract clauses and the intricacies of construction law — they’ve spent their careers building things!…