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No Laws For Prompt Payment in Canada

No Prompt Payment in Canada

Prompt payment laws are incredibly important in the construction industry. Without them, there is little legal muscle to force payments down the chain. Essentially, these laws ensure that parties at the top of the payment chain pay subcontractors in a timely fashion by establishing deadlines and penalties. For example, the deadline for payment in California […]

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Oral Contracts Can Compound Your Problems

Oral Contracts Can Compound Your Problems

Congratulations to the city of Cleveland on finally bringing home an NBA Championship! With the attention of the sports world focused on The Land, it only seems natural to highlight some construction litigation that has taken place there. This case may not include the Cavaliers, but the Cleveland Browns faced issues of nonpayment during a restoration project in […]

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Reduced Retainage Is Not Released Retainage

construction financial manager review

Many states, like California, manage the amount of retainage withheld on public projects. In California, no more than 5% of the contract price may be withheld. Also, the normal practice is that after 50% of the project has been completed, no more retainage will be withheld. Therefore, public owners will calculate how much retainage needs […]

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California Prompt Payment Split Continues

Collecting and keeping the relationship

In April 2015, we wrote an article about the split in California concerning what constitutes a “good faith dispute” when dealing with retention and prompt payment. Since then, the split has continued with the most recent decision being handed down in December 2015. Prompt Payment in California In California, a direct contractor must pay a […]

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CFM Review: Preventing Non-Payment

mitigate 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 in different ways. We’d love […]

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Arizona Amends To Give Design Professionals Prompt Payment Protection

Arizona Mechanics Lien & Bond Claim Resources

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 2336. This new law took […]

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Taylor Swift and Prompt Payment

Taylor Swift

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, and the company had […]

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CFM Review: Will Construction Photography Affect Payment?

Construction Photography: Will it affect 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 in different ways. We’d love […]

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Is Textura’s Early Payment Program a Benefit? Or Only Smoke and Mirrors?

Waiting for slow payments is a well known thorn in the side of subcontractors. It’s the associated difficulties presented by slow payment, however, that take this waiting from an annoyance to a significant problem. Subcontractors often required to float project costs, and waiting for payment from the GC can stress working capital and cause severe […]

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Textura: A Friend or Foe To Subcontractors?

Textura Lien Waivers Fair or Unfair?

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 write a letter to […]

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