Foro Construction Payment Legal Questions & Lawyers' Answers

Designed to improve project accuracy, reduce manual entry, and support faster payment processes with Nuvo and Levelset. Accurate job information plays a key role in supporting effective lien rights management. When project details are incomplete or inaccurate from the start, contractors and suppliers spend valuable time correcting information, increasing the risk of delays, administrative work, and payment issues. That’s why Levelset has partnered with Nuvo. Nuvo is building an AI order-to-cash network to help automate job intake and streamline the credit application and job sheet process . Together, our integration helps teams capture project information earlier, reduce manual data entry, and automatically create Levelset projects, helping streamline your workflow to better manage your lien rights and keep projects moving. Why Accurate Job Sheets Matter For many contractors and suppliers, the credit application and job sheet process is still manual. Information is collected through emails, PDFs, spreadsheets, and phone calls, often requiring multiple rounds of follow-up before a project is ready to begin. While these manual processes consume valuable time, they also increase the chance of missing or inaccurate project information. Something as simple as an incorrect project address, owner name, or legal entity can create unnecessary administrative work later in the lien management process. Starting with more complete, accurate project information helps teams get off to a str

Working in construction means juggling a million things at once. Between managing crews, chasing down materials, and dealing with demanding owners, your paperwork can sometimes take a back seat. But when a payment dispute hits and you need to secure your rights, that paperwork becomes your entire world. You rely on mechanics liens as a powerful tool to force slow-paying clients to face the music. Mechanics liens are a robust protection for your business. True. Mechanics liens are completely foolproof, no matter what you write on them. False. A recent North Carolina Court of Appeals ruling just dropped a bombshell on contractors, subcontractors, and material suppliers alike. The bottom line? A simple typo on your lien form can turn your powerful leverage into a slow, expensive mess, leaving you completely out of the money. Let’s break down exactly what happened so you can stand your ground and keep your hard-earned cash safe. Breaking Down the Law To understand how a tiny mistake can ruin your day, we have to look at how North Carolina handles lien claims under N.C.G.S. § 44A-12 . The state is incredibly strict about the contents of your lien filing. The statute requires you to list specific dates on your claim of lien, including the date you first provided labor or materials and the date you last provided them: (5) Date upon which labor or materials were first furnished upon said property by the claimant: (5a) Date upon which labor or materials were last furnished upon said p

If safety squints don’t fly on the jobsite, they definitely won’t when it comes to the county recorder looking at your lien or preliminary notice. Submitting a document for recording with specks, smudges, lines, contrast issues, or other imperfections that make it hard to read is one of the fastest ways to wind up with a rejection. Here, we’ll discuss a few steps you can take to make sure your next submission has the best shot of being recorded on the first try! The “Legibility Requirement” for Recorded Documents So, just what exactly is “legible” when it comes to recording? The answer is, like many things, it depends. Typically, states have their own recording requirements outlined in statute, which mention readability in one way or another. Further, individual counties may have different systems for recording and storing documents that produce a variety of results. What one county with a high-resolution scanner may accept, another using microfilm may turn away. At the end of the day, however, it is often up to the judgment of the recording official to determine what they will accept. It’s easy to get frustrated with a rejection. However, remember it’s the county’s responsibility to uphold the integrity of the public record and recording requirements enshrined in state law. Examples of legibility requirements: Tennessee Code Ann. § 66-24-101 The county register may refuse to register any writing eligible for registration in accordance with this title, if such writing, in the

In the world of mechanics lien and bond claim law, deadlines are famously unforgiving. For subcontractors and suppliers, missing a notice deadline, even by a single day, can cause valuable rights to vanish instantly. Many states rely on the “mailbox rule,” the idea that if you drop a notice in the mail by your deadline, the postmark will prove you were on time. However, as of late 2025, the USPS has formalized changes to how and when postmarks are applied. These operational shifts mean that your “just in time” mailing strategy has become a high-stakes gamble. What Changed? The USPS clarified in a new section of the Domestic Mail Manual (DMM), 608.11, “Postmarks and Postal Possession ,” that a postmark indicates when a piece of mail is processed at a facility, not necessarily when it was picked up by a postal worker or dropped in a collection box. As part of the “ Delivering for America” plan , the USPS is consolidating its network from nearly 200 local facilities into roughly 60 regional hubs. This means that your mail often travels farther (sometimes hundreds of miles or potentially across state lines) before it receives its first official scan and postmark. Furthermore, under the DFA, a day of service time has been added to First-Class Mail when it originates more than 50 miles away from the regional processing center. This adds significant lead time before a piece of mail is even eligible to be postmarked. In other words, a document handed to the USPS on Day 1 may not rece

Attaching extra documents to a mechanics lien can make or break your filing, but the rules aren’t uniform. Some states mandate specific attachments by statute, while others merely allow or recommend them; many provide no direct guidance at all, leaving county recorders with wide discretion, for better or worse. Attachment rules for mechanics lien filings vary by state and, in practice, by county recording office. This page breaks down the state-by-state requirements where they exist and provides additional information to help fill in the gaps where they don’t. Attaching Additional Documentation to Lien Claims – A Tale of Two Cities Imagine that you’re a subcontractor. You’ve been diligent, tracking every invoice and change order on a New York project, only to receive a notice from the county clerk stating: “Claim rejected: Do not send invoices or contracts as part of the mechanics lien.” When the difference between a protected payment and a rejected claim comes down to what feels like a technicality, contractors may feel lost. Where one county clerk, like the New York County Clerk above, may actively reject a claim for attaching an invoice, another county clerk, like a Missouri circuit clerk, may reject a claim for not including any applicable invoices. Ultimately, this isn’t a one-size-fits-all situation, but many state statutes provide at least some guidance. → For another real-world example of how a clerk’s discretion can play out, see “Is This A Capricious Action By St Ta

As the construction industry prepares for the 2025 winter break, a recent executive order has introduced unexpected complexity to year-end compliance. While these additional days off are intended for federal personnel, they create a ripple effect that could jeopardize your payment rights if state and local filing offices follow suit. The End-of-Year Deadline “Curveball” President Trump recently issued a new Executive Order, and it’s throwing a bit of a curveball into the end-of-year calendar. All federal executive departments and agencies will be closed on Wednesday, December 24, 2025, and Friday, December 26, 2025. While a five-day holiday weekend sounds great for federal employees, it creates some “holiday homework” for contractors and suppliers tracking strict lien deadlines. Read the Executive Order here Is it a “Real” Federal Holiday? Technically, this order is an administrative closure of federal executive offices rather than a blanket declaration of a new federal legal holiday for all purposes. The order treats these dates as within the scope of federal pay and leave statutes for federal employees. Because it doesn’t automatically create a universal “federal holiday” for private filing deadlines, the impact on your specific lien depends entirely on state law. How This Affects Your Deadlines The practical effect on your mechanics lien depends on how your specific state handles “legal holidays” and office closures: The “Next Day” Rule: Many states push a deadline falling

Great news for construction businesses in California! Governor Gavin Newsom recently signed Senate Bill 440- also known as the Private Works Change Order Fair Payment Act- into law. This new legislation aims to simplify and speed up the process of handling change-order and time-extension claims on private construction projects. Mark your calendars! The law law applies to contracts entered into on or after January 1, 2026. So now’s the time to start updating your contracts and internal processes. Why the Change? If you’ve spent any time on a construction site, you know surprises happen- delays , scope changes , you name it. Until now, resolving those changes on California private projects has often been a slow, expensive mess. Cue the “Private Works Change Order Fair Payment Act.” SB 440 doesn’t replace any current prompt payment or dispute resolution laws. Rather, it adds a structured claims process to make things run faster, fairer, and less litigious. The goal is to get everyone paid on time and keep the projects moving. Read the full text of California Senate Bill 440 here What the New Process Looks Like Here’s a quick breakdown of how SB 440 structures the process for change-order and time-extension claims : 1. Submitting a Claim Contractors or subs must submit a detailed, documented claim if they’re requesting extra time or payment. 2. Owner’s Response Timeline The new law requires a timely response from the property owner: 30 Days to Meet and Confer : After receiving th

Big news for contractors working on public works projects in Georgia! A new piece of legislation, House Bill 137 (HB 137), has been signed into law, increasing the contract value threshold for payment and performance bonds. This change, effective July 1, 2025, could simplify things for smaller public projects and impact your bid strategies. Overview of Georgia House Bill 137 Bill: Georgia House Bill 137 Title: Contracts; increase dollar value of certain public works contracts exempt from provisions relating to retention of contractual payments Sponsors: Rep. Victor Anderson Rep. Eddie Lumsden Rep. Lee Hawkins Rep. Bill Yearta Rep. Rob Leverett Rep. John LaHood Effective Date: July 1, 2025 What’s Changing with HB 137? Previously, Georgia’s “Little Miller Act” ( O.C.G.A. § 13-10-1 et seq. ) required payment and performance bonds for public construction contracts valued at $100,000 or more. HB 137 is stepping things up! The new law raises this minimum contract amount from $100,000 to $250,000. Think of it like this: the Little Miller Act is designed to protect subcontractors, laborers, and material suppliers on public projects, since you can’t typically file a mechanic’s lien against publicly owned property. Payment bonds ensure you get paid for your work, even if the general contractor runs into trouble. Performance bonds guarantee the project gets completed as agreed. HB 137 acknowledges that construction costs have risen significantly, making the old $100,000 threshold trigge

Contractors operate with low profit margins as it is, so absorbing the increased cost of materials and labor is usually not an option. There are three main ways contractors can effectively deal with construction cost increases: financing building material purchases, adding a margin to their estimates, or including an escalation clause in the contract. 1. Protect your Lien Rights Protecting your lien rights is one of the most critical steps in protecting your right to payment for what has been delivered to a job site. Most states base the amount allowed on a lien on the true and fair value of the material and labor delivered to the job site, so even if your contracts list pre-tariff pricing, there may be recourse. Make sure to check our state-by-state guide Here , and make sure to understand if you are in a state that requires an amended preliminary notice if costs increase substantially. 2. Increase your margins Contractors can raise their prices to their customers in order to offset potential cost increases. How much to raise prices depends on the length of the project and the materials you are using. One problem with raising margins: There’s no guarantee that prices won’t increase more during the duration of the project . You may be limited in your ability to recapture that lost income. And with intense competition for projects, contractors who attempt to cover potential cost increases in their price may find themselves losing bids. Other contractors may not be keeping pace

The construction industry has long been perceived as a male-dominated field, but women are increasingly making their mark, especially in areas like technology and credit management. As we celebrate Women in Construction Week, it’s crucial to recognize the unique perspectives and valuable contributions that women bring to the table. From project management software to innovative financial solutions, women are at the forefront of driving change and progress in the construction sector. In recent years, we’ve seen a significant shift in the industry landscape. More women are entering construction-related fields, bringing fresh ideas and approaches to longstanding challenges. This is particularly evident in the realms of construction technology and credit, where women are leveraging their expertise to streamline processes, improve efficiency, and drive profitability. From developing cutting-edge software solutions to implementing sophisticated financial strategies, women are proving that diversity in thought and experience leads to better outcomes for everyone in the industry. However, challenges persist. Women in construction often face unique obstacles, from unconscious bias to a lack of mentorship opportunities. Despite these hurdles, many are thriving and paving the way for future generations. By sharing their stories and insights, these trailblazers are not only inspiring others but also actively shaping a more inclusive and innovative future for the construction industry. As

The Associated Builders and Contractors (ABC) Annual Convention is back, and this year, it’s bigger than ever as ABC celebrates 75 years of advancing the construction industry! From February 25-27, the industry’s best and brightest will gather in Las Vegas to connect, compete, and celebrate excellence in construction. At this dynamic event, attendees will experience the National Craft Championships, the Construction Management Competition, the National Excellence in Construction® Awards, and the Construction Workforce Awards. Plus, industry experts will take the stage to share insights on the latest trends, technology, and strategies shaping the future of construction. Levelset + Procore: Helping Construction Businesses Scale Confidently Levelset is excited to attend this event alongside Procore at Booth #1307! We’re looking forward to connecting with industry leaders, contractors, and suppliers to discuss how we help teams get paid faster, reduce financial risk, and scale their businesses with confidence. As part of the Procore family, Levelset empowers construction teams by streamlining lien rights management, automating compliance, and providing visibility into payment processes. By ensuring predictable cash flow and reducing administrative burdens, we help businesses focus on what they do best – building great projects. Meet Us at Booth #1307! If you’re attending ABC’s Annual Convention, don’t miss the chance to visit Booth #1307 and connect with us! Whether you’re lookin