Lien Rights Explained, Part I

We’ve referenced the issue of lien rights on here before.  Lien on Me In the construction industry, lien rights are one

We’ve referenced the issue of lien rights on here before.  Lien on Me

In the construction industry, lien rights are one of the key tools to ensuring payment for work completed.  However, looking back through our old blog posts, I realized that we’ve left a few crucial details out:  Namely, what are lien rights?  What do you have to do to protect those lien rights?  How do you file a lien?

Just knowing that lien rights are a thing doesn’t really help anybody.

After all, I know that private jets are thing, but I sure as heck don’t have one.

And so, in the interest of making this blog a tad more educational, I think it’s high time we dive right into the key question of “What are liens?”.

Specifically, when we talk about lien rights, what we are really referring to is a mechanic’s lien.

According the world’s most reliable source (Wikipedia), a mechanic’s lien is ‘a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property’.

In short, if you do the work, and the owner or GC doesn’t pay you, you can gain a security interest in the property. If need be, this can even result in the court ordering the property sold so that you get paid from the proceeds.

Yup.

Liens are a big deal.  However, in order to be able to exercise these rights, you have to do more than just perform the work. You have to monitor the lien laws for your state, check to ensure that the work you do falls within your state’s statute, send the appropriate notices, and ensure that no deadlines pass.  Without all of these steps, your lien rights will quickly disappear, depriving you of one of the construction industry’s most powerful tools for ensuring payment.

Tune in (or, perhaps more accurately, read in) next week for a basic overview of the notices required by most states in order to preserve lien rights.

Construction Finance Safety Minute: Managing the Heat

  As most of you are probably all too aware, we are very much in the dog days of summer

As most of you are probably all too aware, we are very much in the dog days of summer right now.

As you are also probably aware, this adds another element of risk to your already difficult jobs.

…………………………………..

Now, odds are, you’ve already read over a few summer safety tips before. However, as both a neurotic lawyer and the wife of a construction company owner who doesn’t know how to listen to me, I’m going to go over a few bits of summer safety again.  Because trust me, trips to the ER aren’t great for productivity or your bottom line.

1.  Stay hydrated.

I know this is the most obvious piece of advice ever, but seriously, pretend you’re a freakin’ camel.  If you feel thirsty, it means you’re already dehydrated, so don’t wait until you’re just dying for a water break to do something about it.

And no, Mountain Dew and coffee do not count as staying hydrated.

2.  Get enough sleep.

Hot weather is tiring on your body.  Hot weather also messes with your circadian rhythm.  As such, it’s really easy to fall victim to sleep deprivation during the summer months.

When you go home at night, keep your room cool, and don’t stay up all night.

I know. I’m sounding like your mom here, but dang it, moms have good advice about these things.

3.  If you can, avoid going in and out of air conditioning all day.

This one is counterintuitive–if you’re spending 80% of the day out in the hot sun, it feels great to get a ten minute air conditioning break whenever you can.  However, going back and forth makes it harder for your body to adjust to the heat, so ultimately, you’re just making the situation worse.

Instead, find a shady area to drink some water.  That will help you cool off without the drastic temperature change.

4.  If you can, cool your head and neck.

You have a lot of blood running through these areas, so if they stay cool, you’ll stay cool.

All of these summer safety tips are courtesy of ForConstructionPros.com, so to read more, feel free to click on over to 12 Safety Tips to Help Workers Survive Another Nuclear Summer.  Otherwise, go sit in the shade and drink some water.

The ASA Luncheon and Our Newfound Fame

We, at Construction Finance, are now officially famous! Well, John is.  The rest of us are still just toiling away

We, at Construction Finance, are now officially famous!

Well, John is.  The rest of us are still just toiling away in obscurity.

But yes, y’all, yesterday John made the brave journey into Little Rock to serve as the keynote speaker for the American Subcontractors Association of Central Arkansas luncheon!  That is…easily the closest thing to fame any of us have achieved this month. (The second runner up being the picture of my dinner that I posted to Instagram last week.  It got seven whole likes, and six of them weren’t from my mom).

In all seriousness, it was a real honor.  The American Subcontractors Association is a great organization that does a lot to benefit the construction industry, and we’re always thrilled to work with them in any way that we can.  Every month, the Central Arkansas chapter holds a meeting in Little Rock to try to educate the area’s subcontractors about industry trends, and it always provides a great opportunity for everybody to mingle…plus, this is Little Rock we’re talking about.  The food is guaranteed good.

Though I was not there to personally vouch for either the food or John’s oratory skills, it sounds as though it was a wonderful time!  Hopefully, the hard working men and women of central Arkansas left knowing a little more about the financial side of commercial contracting.  And, barring that, hopefully John came away a couple of pounds fatter–after all, it’s not easy for me always having to be the token junk food fiend in this office!

Why Not Get Paid Now? Construction Invoice Factoring 101

Construction Finance is owned and operated by John Sawyer in Jonesboro, Arkansas John, Dia & Team Sawyer (Our 8 Children)

Construction Finance is owned and operated by John Sawyer in Jonesboro, Arkansas

John, Dia & Team Sawyer (Our 8 Children)

Should Have Been a Plumber

A few months ago, I’d written a blog post about the staffing challenges that have come about as a result

A few months ago, I’d written a blog post about the staffing challenges that have come about as a result of the current economic boom.  In it, I’d mentioned that, for better or worse, construction is a world unto itself. What Does Increased Economic Growth Mean for Construction Profits?

Whoo boy, was that ever an understatement…

In retrospect, I uh, may have been a little confident in my assessment that hiring and recruiting would go unchanged.  While Construction is DEFINITELY different than trying to hire a bunch of CPAs or compliance officers, it seems that the challenges of finding a quality plumber have led some companies to get creative.  Reallllllly creative.

WSJ-Perks for Plumbers Include Hawaiian Vacations, Craft Beer, and Lots of Zen

According to the WSJ, plumbing contractors have now taken to installing craft beer lounges in their offices, offering sweet sign-on bonuses, and taking their employees on mid-day jet ski excursions.

Yup.  You read that one right.

Now, as somebody who is currently sitting in a normal office, drinking a cup of re-heated Folgers as I stare at a spreadsheet, I have reached only one conclusion from this article:  I should have been a plumber.

I mean, jet skis are awesome. Way more awesome than re-heated coffee (a low bar if ever there was one).

So, to those of you out there who aren’t reading this, because you’re too busy relaxing at the lake and spending your bonuses, congratulations!  To those of you having to pay someone to go to the lake, my regards. And to the rest of us?  Meh, pictures of boats and beaches are almost the same thing, right?  Right?

Yeti Tundra 65 + 10% Referral Fee for Each Funded Construction Factor Referral

Send us your construction referrals today!  When we fund your referral, we will send you a Yeti Tundra 65 cooler

3 Yeti Tundra 65 Coolers

Yeti coolers are at home on the dock, at the ranch, in the blind, or on the boat, and the Tundra® 65 is no exception. It’s the most versatile cooler, just as adept at keeping your catches cold in the field as it is storing the drinks and food for your backyard barbecue. This ice chest is plenty roomy and can hold a limit of redfish or your prized brisket without breaking a sweat.

Note: All Tundra coolers come with one dry goods basket.

Win ALL 3 Coolers at Once

1 Yeti Tundra 65 in your choice of white, desert tan or ice blue when you send us a referral that we fund.  Only 3 to give away!  If you send us 3 separate referral customers that we fund, you win all THREE coolers!  Send your construction factor referrals today!

1. OUTSIDE 17 1/4” × 16” × 30 5/8”
2. INSIDE 10 5/8” × 11 1/8” × 23 1/8”
3. EMPTY WEIGHT 29 LBS

Easy Button and IFA Miami Conference 2018

First of all, I would like to give a big thanks to the  IFA and all of those that made

First of all, I would like to give a big thanks to the  IFA and all of those that made the 2018 Miami conference such a huge success!  It’s okay to admit that many of us went to Miami to learn the secret recipe of factoring. Personally, I don’t think I was asking too much.  I just wanted to leave with that Easy Button that would fix the two persistent items in my construction based factoring company: 1.  How to get good customers without spending money 2.  How to rest assured that all of my account debtors will pay There was one hotel guest that must have possessed this Easy Button. Clue: he has teeth coated in diamonds. Of course, I am talking about Lil’ Wayne, the star of the Friday night concert in the LIV nightclub of the Fountainbleau. After googling Lil’ Wayne’s net worth of approximately $150 mil, I asked myself, “How can this guy make so much dough with a vocabulary full of 4-Letter Words?”. Clearly, this guy has a way bigger Easy Button than mine. As it turns out, I, unfortunately, do not have an Easy Button.  I do, however, have one four letter word that fixes almost everything:  WORK. After visiting with several factors, bankers, and various other experts in the field, my suspicions were confirmed.  It turns out that the secret to successful construction factoring is that four letter word that makes everybody cringe. WORK. Items such as UCC filings, Notice of Assignment, verifications, and estoppels are great.  But when it comes to purchasing a construction receivable, these items mean that the work has only just begun. Are all suppliers and crews paid?  Are lien waivers collected?  Are the client’s lien rights preserved? etc, etc, etc. There may not be an Easy Button for the Construction Factoring industry.  But, here at Construction Finance, we are ready to do all of the heavy lifting for your referrals. We look forward to doing the WORK of funding your construction leads! Call or email anytime to learn if our program fits your prospect’s needs. Are you tired of turning down construction clients because they tend to be too complicated or messy? We have over 20 years experience in the construction business coupled with over 30 years in invoice finance. We personally fund 100% of our clients and are committed to providing your referrad prospects with quick responses. Check out our broker referral agreement and our client application. You can learn more about us at our website or contact us today.   P.S. We also have great introductory videos for you to share with your prospects about how construction factoring works.  See them all here.

Get a Lawyer Before You Need a Lawyer

Ask anyone you know, and they’ll all agree:  Lawyers are the worst!  Heck, I am a lawyer, and I’m not

Ask anyone you know, and they’ll all agree:  Lawyers are the worst!  Heck, I am a lawyer, and I’m not going to argue that one!

They’re expensive.  They take up time.  They wear stupid looking suits and speak in terms that nobody understands.  They are, in short, not the guys (or ladies) anybody feels like hanging out with on a Tuesday afternoon!

That said, Construction Dive makes a pretty compelling case for why it’s a good idea to have a lawyer look over your construction contracts before you sign the dotted line. Four Reasons Why Construction Companies Should Have an Attorney Review Contracts

In short, construction contracts are complicated, and the stakes are high!  If you don’t know what to watch out for, there are a lot of harmless sounding sentences that could end up costing you hundreds of thousands of dollars.

There are also a lot of scary sounding sentences that are actually pretty harmless…or at least unenforceable.

It may be tempting to skip that meeting with the stuffy guy in the stuffy suit, but particularly if you’re looking at a “make or break” contract, it’s worthwhile to get a second set of eyes on everything.  Nobody wants to spend several hundred dollars and an hour of their life in a lawyer’s office, but a little time and money now can save you a lot of grief down the road!

 

Tara “Tipper” Coker, Esq.

www.constructionfinance.com

Tel  870 277 0658    Fax  870 451 8154

Lean on Me or Lien on Me….

“LIEN on Me”.   *Our apologies for the play on words of the famous Bill Wither’s Classic* You remember the lyrics,

“LIEN on Me”.   *Our apologies for the play on words of the famous Bill Wither’s Classic* You remember the lyrics, You just call on me brother, when you need a hand  We all need somebody to LEAN on  I just might have a problem that you’ll understand  We all need somebody to LEAN on … As a growing subcontractor, you often need someone to Lean On as your business continues to grow.  Construction Finance is here for you to Lean On.   But, Sometimes, when projects don’t pay as outlined by your contract, you need a bit more.  You may need someone to “LIEN ON”.   We love to measure success by helping companies with their cash flow challenges, thereby allowing them to take on bigger projects. Watching our clients Grow as they LEAN on us for financial support is a truly awesome feeling. However, one of our proudest moments last month involved the other L word,  LIEN not LEAN.  Our client began to panic near the end of a commercial project. Payments from her contractor to her seemed to  dwindle.   We assured her that she could LEAN on us. At NO additional cost to our client Construction Finance had already issued necessary Preliminary Notices along with other documents to the General Contractors and Project owners to ensure that our client’s payment rights were protected. Our client initially LEANED on Construction Finance for working capital.  But, she was so thankful that part of our services are to protect her LIEN rights throughout commercial projects. — www.constructionfinance.com John Sawyer 870 277 4171 | 870 451 8154|  2111 Race St, Ste 2 Jonesboro, AR 72401

U.S. Setting Tariffs on Canadian Lumber

U.S. Setting Tariffs on Canadian Lumber The U.S. government has recently increased tariffs on softwood lumber coming in from Canada,

U.S. Setting Tariffs on Canadian Lumber

Tara “Tipper” Coker, Esq.

www.constructionfinance.com

Tel  870 277 0658    Fax  870 451 8154