Ken Simonson, the chief economist for the Associated General Contractors of America, doesn’t have good news for the construction industry as the challenging year 2009 drags into its 3rd Quarter.
According to Simonson, the commercial construction industry forecast remains grim “at least through 2010.”
For contractors, suppliers, and other construction professionals throughout the nation, this means that good record-keeping and collection practices remain important.
Almost one year ago, Wolfe Law Group posted an article on its Construction Law Monitor after Ken Simonson reported that 2009 would present economic challenges to contractors.
Now more than ever, the article stated, contractors should consider the benefits of a construction or mechanics lien. The article went on to state:
As soon as the construction project comes to a halt or payment is late, contractors, subcontractors and suppliers should rush to file its construction / mechanics lien to protect its interest in the property. Construction liens are available in virtually every state, and works to transform the project job site as a sort of “collateral” to the contractor for its payment.
The time available to file a construction lien is not indefinite, and the legal requirements should be followed to the letter. However, when filed correctly, a construction lien can help your company recover payment for its project.
Although the stimulus spending will be cause for some optimism in the construction industry, it appears economic struggles will stick around into 2010. And the recommendations of Wolfe Law Group in 2009 are repeated today.