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Construction Debt Collection

Managing payments is burdensome in any business. The construction industry is no different, with its own set of unique challenges.

Construction debt collection is a tricky thing that varies by state laws. This process isn’t made easier when certain states include time constraints when filing your lien or when the surety bond claim process creates additional difficulties. 

What makes the construction payment system so complex? 

There’s a vast number of reasons, such as multi-tier participants, retainage, privilege wage and more. So what are some ways you can ensure that you get the payment you deserve?

Construction Debt Collect Strategies

Lien Right Management

The construction industry is able to protect contractors, subcontractors and suppliers for payments through a legal document that’s known as mechanics liens. These liens can help ensure that you get paid for private and public projects during construction work.

One way that you can file a mechanics lien is through Lien Right Management, which is a tool that allows first, second and third tier subcontractors and suppliers to file a claim. Each claim may need different information, such as Preliminary Notices, depending on your state, but these management tools are effective in seeing your claim through upon completion.

Surety Bond Claim

Just like a mechanics lien, making a claim against a payment bond can be a strict and time-sensitive process depending on your state. In some cases, this process might even be a bit more complex than a mechanics lien, since it needs to be more specific.

Whereas a mechanics lien is interested in the property being improved, a Surety Bond claim is interested in a specified amount of money set aside for ensuring payment. Since public property cannot be liened and foreclosed upon to secure payment for all parties involved, every state requires that general contractors provide a payment bond for every project. This bond provides security for subcontractors and suppliers so that they will get paid for their work, similar to a mechanics lien.

Construction Claims Disputes 

When you consider using a construction debt collection service provider, be sure they understand not just lien rights and surety bond claims, but the numerous elements involved in Construction Claims Disputes.

Want to learn more about the process of selecting the right service provider? Check out these three blogs to see how you can prepare yourself for mechanics liens and surety bond claims:

  • Deviation From Original Plans – Constructive & Directive Changes

Reason Contractors Don’t Get Paid

There are several common reasons why contractors receive late payments or none at all. These include disputes, lost invoicing, unauthorized purchase orders and payment issues from the customer. Not getting paid for the work you put in can have a negative impact on you and your business. So what can you do to fix this?

As construction cash flow consultants, we provide our clients with the tools they need to avoid the dispute being settled in litigation. With our unique approach, we get our clients paid while also preserving the business relationship between you and the delinquent account. 

Our consulting service is integrated with the construction debt process, allowing us to address any problems you stumble upon along the way. If your debtor is unable to pay you for your work right away, the last thing they need is a threatening legal letter. Instead of putting salt on the wound, our unique approach provides debtors up to $5 million in single invoice financing, so that they can overcome their current financial situation and get you the money you deserve.

How We Operate

We know that time constraints are a big issue when trying to collect your claims from your debtors. Because of this, our team moves quickly and efficiently to get you the results you’re looking for. By utilizing proven strategies, we know we can get your debtor to the negotiating table so that you get paid faster. 

What’s more is that we operate on a sliding scale or on a flat fee contingency basis with no obligation period. Unlike attorneys who are paid by the hour, we are paid only for results. 

If you are having issues collecting payments and not sure what you need to do next, contact us for free so we can get started on the next steps that you need to do.

Trouble Getting Paid?

Get Paid Faster by Filing Your Bond Claim Online.

Filing a bond claim against a contractor can be complicated, but with, it doesn’t have to be. With decades of knowledge and experience handling surety claims, we’re here to ensure that you get the compensation you deserve for your hard work. File your first bond claim today for free and find out how easy it can be to settle your construction dispute and get the money you earned quickly.

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