Construction Outlook Grim through 2010 – Staying Ahead of Accounts Receivables To Retain Its Importance
On July 13, 2009
By Scott Wolfe Jr
| Email This |  Comments (2) |
 Print
|
 Trackbacks |
Ken Simonson, the chief economist for the Associated General Contractors of America, doesn’t have good news for the construction industry as the challenging year 2009 drags into its 3rd Quarter.
According to Simonson, the commercial construction industry forecast remains grim “at least through 2010.”
For contractors, suppliers, and other construction professionals throughout the nation, this means that good record-keeping and collection practices remain important.
Almost one year ago, Wolfe Law Group posted an article on its Construction Law Monitor after Ken Simonson reported that 2009 would present economic challenges to contractors.
Now more than ever, the article stated, contractors should consider the benefits of a construction or mechanics lien. The article went on to state:
As soon as the construction project comes to a halt or payment is late, contractors, subcontractors and suppliers should rush to file its construction / mechanics lien to protect its interest in the property. Construction liens are available in virtually every state, and works to transform the project job site as a sort of “collateral” to the contractor for its payment.
The time available to file a construction lien is not indefinite, and the legal requirements should be followed to the letter. However, when filed correctly, a construction lien can help your company recover payment for its project.
Although the stimulus spending will be cause for some optimism in the construction industry, it appears economic struggles will stick around into 2010. And the recommendations of Wolfe Law Group in 2009 are repeated today.
This article was originally posted on Express Lien’s topic-specific Construction Lien Blog.
About the Author: Scott Wolfe Jr
Scott Wolfe, Jr. obtained his J.D. degree from Loyola University of New Orleans, and his B.A. from Southern Methodist University in Dallas, TX. In 2006, 2007, 2008 and 2009, Scott was recognized as a Leader in Law by CityBusiness Magazine. The son and grandson of general contractors, Scott is a construction litigator in the Pacific Northwest, and the founding member of the bi-coastal law firm, Wolfe Law Group. Scott is also the founder and CEO of Express Lien, Inc., a legal document preparation service for contractors. In 2008, City Business Magazine recognized Scott as one of its Innovators of the Year for the Express Lien concept. As an entrepreneur himself, Scott has a strong background in business and commercial transactions and laws. He focuses his practice on the legal issues facing the construction industry, and has represented clients in multi-million dollar construction disputes in litigation and alternative dispute resolution proceedings. Scott is a LEED AP.
I agree that that the stimulus package will stimulate some activity. Maybe the combination of lower housing costs and the stimulus will surprise us: http://blog.diggerslist.com/2009/12/25/homebuilding-looking-stable/
Hi Matt – Thanks for stopping in and commenting on our blog. I think folks are happy to see 2009 go, and optimistic looking forward. We certainly are. Thanks for the link.