DCA News

Here you can read all kinds of info relating to Construction and the Association!

5 Pro Tips to Get Paid Faster

Who Wants Prompt Payment?

Construction industry employees want prompt payment. Spending energy and costs towards prompt payment is frustrating, time consuming and therefore not productive in building a business.  It’s hard enough to secure jobs at a price that works. It’s about cash flow. The contractor (general or subcontractor) shouldn’t fund someone else’s project.

The vast majority of owners and contractors honor their contractual obligations and do so promptly. It’s bad business not to. The ones that do not, threaten your business. A hung account receivable could leave a sizable hole in the current asset side of your balance sheet. Suppliers, shareholders, banks and bonding companies could therefore feel the impact.

Your surety leverages support levels based on a number of factors and financial metrics including how much working capital is in your company.

5 Pro Tips:

A receivable that is well overdue, or due from an entity of questionable solvency may not be viewed as current and thus could directly affect your capacity to access the surety credit you need for your business.

2 View the Surety Broker and the Surety as your partners in the business. Interests are aligned regarding prompt payment.

3 Tender bond documents to an unknown Owner include the “Financing Clause” as standard. The Financing Clause requires the Owner to furnish evidence that they have financing or funds committed to cover the costs of the project, before requesting performance bonds. Expect tough questions. The Surety does not mind being the one to ask. We are in this together and anything that protects you and your balance sheet is good for us as well. And quite frankly an Owner should expect those questions and diligence when awarding sizable construction contracts.

4 If you are a sub-trade, you can query an owner to see if you

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Current DCA Member Trade Information is Essential

DCA Members,

Always review and make sure the DCA has your up-to-date information in the Membership and Classified Listings Section. It is important for your company to be displayed on the site correctly.  This web site is the source for DCA member trade information - current company data is essential.

 

Email changes to This email address is being protected from spambots. You need JavaScript enabled to view it.

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Legally Speaking

Legally Speaking: When to Engage Construction Legal Counsel

Posted on January 10, 2017 by J. Norman Stark

 
  • A company receives a lawyer letter, stating representation of a party involved in one of the company’s projects, with notification of a claim for damages.
  • A company receives documents appearing to be new, unusual or unforeseen contract forms, additions, modifications or change orders.
  • Company encounters acts or conduct by another party on the project which is inconsistent with its previous experience, posing a potential risk factor.
  • A company receives assertion or notice, written or verbal, of potential claims by anyone.
  • A company considers terminating a subcontractor, supplier, or pulling off from the project.
  • A company detects or recognizes acts or conduct which may jeopardize the project or the company’s position.
  • A company discovers information which tends to raise substantial doubt of timely payment.
  • A company recognizes unusual conduct of the owner, developer, lender or others on the project which normally would not require the attention or intervention of the company’s lawyer.
  • Company experiences personality problems with representatives of another party on the project.
  • A company, after repeated efforts to resolve differences or difficulties, continues to experience significant risk, requests counsel to consider and advise on proper strategy implementation.
  • A company receives formal notice of an insurable lien or claim, threatening to stop the work, or demanding payment for work completed.
  • Company experiences injuries or loss of property on a project, with insurable losses.
  • A company recognizes financial instability of an owner or subcontractor, or disputes persist, impacting potential profitability of the project.

Experienced construction counsel may be relied upon to implement avoidance

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