Pay apps – like many things in the construction industry – take a relatively simple concept, and add layers of complexity. By familiarizing yourself with the common forms and requirements, you can position yourself to make your business more efficient and get paid faster.

Each state has different rules and regulations surrounding contractor licensing and the license bonds that go with the process. To make it easier to ensure you’re getting the right contractor bond for your next job, here is a state-by-state guide to bond thresholds for general contractors.

Well guess what — we’ve got some good news for you. The construction industry is different from other industries. That’s because folks in the construction business have access to a demand letter that actually works — it’s called the Notice of Intent to Lien.

The short answer: it is rarely if ever a good idea. The longer answer: it depends on who you represent. Please read on for a brief explanation.

After bonding off a mechanics lien, this bond is substituted for the owner’s property – it is now the subject of the claim for non-payment instead of the project property. When a lien is bonded off, any proceeds recovered from a claim will come from the surety bond instead of the sale or foreclosure of the property.

But here’s another business saying that may not be as well known as the one above, though it’s no less true: “Growth EATS Cash.” Why? Because business growth doesn’t just happen, it needs to be fueled. And the fuel is cash.

But while the nature of their work might be a little different than others, roofers still have to deal with the same construction payment issues that are so common in the industry: slow payment and non-payment.

However, sometimes mistakes happen. Someone forgets to send a notice on a certain project, or someone decides not to send a notice for whatever reason, and then a payment issue crops up further on down the line.

And that begs the question: can you still file a mechanics lien on a project if you did not send a preliminary notice?

In fact, almost 75% of the states have a preliminary notice requirement for subcontractors. This includes most of the busiest states in the country for construction activity, including California (the entire West Coast, really), Florida, and Texas.

Generally, we have found that this confusion is a result of parties that either:

1) don’t fully understand how the lien waiver process can be used to benefit both parties; or

2) are forced into a particular waiver situation with which they are uncomfortable.

In the following article, we’re going to clear up some of this confusion about exchanging lien waivers.

Sometimes it can be difficult to pinpoint the start date of a construction project, but this problem is solved by a Notice of Commencement. This document formally designates the beginning of a project.

The main purpose of retainage is to ensure that subcontractors satisfactorily and completely finish their work, but by definition retainage is withheld on work satisfactorily performed. Not only is the practice often ineffective at ensuring project completion, but it causes a significant amount of financial problems for subcontractors, and the industry as a whole.