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CFM Review: Preventing Non-Payment

Every Friday, we select a few articles from the week that we think are worth your time as a construction financial manager (CFM). We look for compelling articles not only about financial topics, but about business, technology, and life, that challenges you to think about your role as a CFM…

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Arizona Amends To Give Design Professionals Prompt Payment Protection

Every state has some sort of Prompt Payment Act which statutorily requires “prompt payment” to contractors, subcontractors, and suppliers. However, not all of these laws have been applied to design professionals such as architects. Arizona Governor recently signed into law the “Arizona Design Professional Prompt Payment Act” or House Bill…

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Taylor Swift and Prompt Payment

A few days ago, the largest company in the world capitulated to the request of a 25 year-old pop/country music star.
On the surface, the 24-hour feud between Apple and Taylor Swift was about music royalties. Apple is rolling out its new music streaming service at the end of the month,…

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Textura: A Friend or Foe To Subcontractors?

Subcontractors appear to have a tenuous relationship with Textura’s Construction Payment Management (CPM) platform.

In 2012, for example, American Subcontractor Association members were “grip[ing]” about the product, which general contractors were forcing them to use and pay for.  The gripes were so prolific they warranted ASA President Walter Bazan Jr. to…

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Is Textura’s Business Model At A Dead End?

On Monday, Textura Corp. (TXTR) reported that its largest shareholder, Northwater Capital, was “changing its role from providing venture support to one of activist,” because the investors believed that the company needed to pursue strategic alternatives. According to the letter from Northwater Capital, “three interrelated factors…should influence Textura’s strategy…the anticipated growth,…

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Alabama Prompt Pay and Reasonable Attorney Fees

Prompt pay laws exist to protect construction industry participants from slow or nonexistent payments. If payment is delayed beyond a specific amount of time (that varies by state) a contractor may be able to make a claim for payment pursuant to prompt payment laws of the state in which the…

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How To Make A Claim Under Prompt Payment Laws

The construction industry frequently sees big, well-funded organizations contracting with smaller, capital-needy companies, and it’s no secret that subcontractors must navigate substantial working capital challenges.  For this reason, the construction industry has well-established “prompt payment laws” in place to protect contractors and suppliers against slow and delayed payments.

If a payment…

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