Our thanks to today’s guest poster Martin Roth, Director of Business Development for zlien. This post is one of three that zlien will contribute to the FieldLens blog.
Getting paid in the construction industry is tough. Projects are very difficult to manage with change orders, weather-delays, workmanship disputes, and all of the other elements that may influence the project. Additionally, communication from the general contractor to the subcontractors often seems to get held up along the way.
But technology can make life in the construction industry much easier if you choose to use it. One of the areas where this has become evident is in receivables management and getting paid on every project.
If you are a subcontractor who is tired of getting shuffled around when it’s time to get paid, there is hope for you yet. The mechanics lien is a tool that is designed specifically for subcontractors and material suppliers to ensure that they are paid for the work they perform.
Does your company already use liens as a tool to control their receivables? Then you know that liens are as complicated as managing a project. FieldLens has you covered when it comes to making project-management easier, and zlien is there to help you secure the money that is owed to your company.
Here are a few project dates that should be very important to you from this point forward:
1. Starting a project? Take note.
In order to protect your company’s right to file a lien on a project, subcontractors must first understand what is legally required of them. 40 out of the 50 states require some sort of preliminary or “pre-lien” notice be sent to the parties involved in the project. Many of those notices factor their deadlines beginning from the day that the project starts. When you start a new project, make note. If a notice is required, send it.
2. Finished on a project? Mark it down.
The day you finish a project is just as important as the day in which you started the project. This is usually the date that is used to calculate the mechanics lien deadline date. It is important to note because once the project is finished, the clock starts ticking for the subcontractor to file a lien. Now we understand that most projects will get paid on time, and that the primary focus should be on providing the best work to your clients, but the mechanics lien is an excellent piece of protection against non-payment for those fringe-cases where it is unavoidable.
Communication is absolutely vital to any construction project, and the advantage of using technology is the speed at which all of the involved parties can connect. This especially holds true when payment becomes an issue. Maintaining the relationship with the customer is only part of ensuring that your company is paid on the project. Knowing your project dates is also crucial to using your mechanics lien rights as a securitization tool. FieldLens can help you with the former, and zlien can help you with the latter.
Martin Roth is the Director of Business Development for zlien, a platform that helps subcontractors use mechanics liens as a tool to secure their receivables. Founded by experienced construction attorneys, zlien is the leader publisher of mechanics lien and bond claim resources. Learn more at www.zlien.com.