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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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Is Textura’s Business Model At A Dead End?

Textura Business Model Handcuffs

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, the associated risks, and its […]

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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 project was located, and may […]

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