Posts Tagged ‘Bad Economy’

Construction Outlook Grim through 2010 – Staying Ahead of Accounts Receivables To Retain Its Importance

On July 13, 2009        

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.

Posted in:     Collections, Construction News, Mechanics Lien  /  Tags: , , , , ,   /   2 Comments

How Filing A Lien Can Be Helpful on a Bankrupt Project

On July 6, 2009        

Let’s face facts:  2009 has not been a great year for construction.

Contractors and Suppliers large and small are facing non-payment scenarios, and sometimes, while waiting for a prolonged payment some are getting feared news:  that the owner or general contractor is filing bankruptcy.

Christopher Hill, a construction attorney in Virginia, just this week published a short and easy-to-read article on JDSupra explaining how Virginia Mechanic’s Liens Survive Bankruptcy.   Mr. Hill summarizes his point with the following:

[I]n today’s climate, contractors should not feel that they are completely helpless in the bankruptcy fight.   Filing a mechanics lien…can put a contractor or subcontractor in as good a position as possible should the owner of a project file bankruptcy.

While the article regards the mechanics lien statutes in Virginia, many other states’ lien statutes operate the same way.

Generally speaking, mechanics lien statutes are written to protect those who contributed to construction projects.   Regardless of what errors in payment occur on a construction project, mechanics liens are the best tool for your company to protect its right to get paid.

But the right doesn’t last forever, and if you file incorrectly, the rules are uncompromising.

This post originally appeared on the Construction Lien Blog, published by Express Lien.

Posted in:     Mechanics Lien  /  Tags: , , , ,   /   1 Comment

Will the 2009 Economy Create More Mechanic Lien Filings?

On December 28, 2008        

At the Construction Lien Blog, we’ve written about the current state of the economy in America, and how this has affected the construction industry from coast-to-coast.

However, there is recent conversation in the media and out in the blog-o-sphere that the economy’s impact on construction has increased the amount of mechanic’s liens filed by contractors.

The Pacific Business News source in St. Louis, for example, has a story on a construction attorney in Missouri who says that he filed twice as many liens in 2008 as he did in 2007.

A similar article appears in the Virginia Lawyers Weekly, which reports that construction litigation in general is increasing in the current economy, with increased claims for construction delays, defects and problems with collections.

It seems that the business journals are full of stories about construction projects being slammed with liens, like the story here and here.

As the new year approaches, what will we see in the construction industry that is predicted to remain pretty stagnet?

One thing is for sure, regardless of whether lien filings increase, decrease or stay the same, with the current credit crunch and economic woes, it’s more important than ever to file liens on claims you do have, and to do it timely and properly.

Posted in:     Construction News  /  Tags: , , , , ,   /   9 Comments

Explaining Louisiana Lien Law at AllBusiness.Com

On December 26, 2008        

AllBusiness.com, an online media and e-commerce company that operates one of the premier business sites on the Web, is a great tool for contractors.   They self-proclaim to help business professionals save time and money by addressing real-world business questions and presenting practical solutions.

As one of its resources, the website has re-published an article written by Lloyd N. Shields, one of New Orleans’ premiere construction attorneys.   The article, titled Mechanics Liens and Construction Bonds under Louisiana Law, offers a good discussion of Louisiana’s sometimes peculiar lien laws.

When doing work in a particular state – like Louisiana – it never hurts to spend time reviewing the overall lien laws in your area.   Understanding and following lien laws is important for your company to avoid bad collection situations, and is increasingly important in this penny-pinching economy.

It would be a prudent start to the new year to spend some time getting familiar with the lien laws in Louisiana.  You can read some basic information about Louisiana lien laws at the Construction Lien Blog here.   The allbusiness.com article is also a good resource.

Also, be sure to check out the Construction Industry Center at AllBusiness.Com.

Posted in:     Uncategorized  /  Tags: , , , , , , ,   /   Leave a comment

Credit Meltdown Squeezing Contractors – Lien To Protect Your Rights

On October 2, 2008        

The Associated General Contractors organization just published an article titled “Credit Meltdown Market Squeezes Contractors,” reporting how the recent economic problems in the U.S. are greatly effecting those in the construction industry.

The article discusses the upheaval on Wall Street, and how its stopping construction projects all over the country. You can read the article at the AGC website at this address: http://tinyurl.com/534o4h

Now more than ever contractors should consider the benefits of a construction or mechanics lien.

Lien rights do not last forever, and with the uncertainty of the U.S. economy and credit flow within the construction industry, its important for your construction company to protect your investment into a project.

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.

Express Lien, Inc. is now filing liens across the country. Filing a mechanics lien costs only $295.00 – a flat fee that includes the preparation and filing of the lien, storage of the documents on our secure servers, and sending copies of the filings to all interested parties.

Express Lien also files lien cancellations, notices of intent to lien, and preliminary notices.

Ready to Get Started? Click Here.

Order your lien by phone, fax or online.

Posted in:     Construction News  /  Tags: , , ,   /   Leave a comment
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