How Contractors Can Safeguard Their Business Assets: A Guide to Business Succession Planning
Running a successful contracting business in California requires more than just skill and dedication to your craft. To truly safeguard your business assets, you must consider the future -- not just for day-to-day operations, but for the long-term continuity of your business. Business succession planning is a critical tool to ensure your contracting business continues to thrive, even after you retire, step down, or in the event of an unexpected departure.
By creating a comprehensive plan that addresses ownership transitions and license continuity, contractors can minimize disruptions and preserve the value of their hard-earned business. Whether through a buy-sell agreement, designative a successor RMO, or structuring the plan for maximum efficiency, these steps will provide peace of mind and long-term security fo ryour business.
Learn more about business succession planning for contractors seeking to protect their assets and ensure the ongoing success of their businesses in our in-depth article.
Challenging and Defending a California Public Works Stop Payment Notice: Affidavit vs. Counter-Affidavit Process
One of the most effective collection procedures available to subcontractors and suppliers to California Construction projects is the "stop payment notice" procedure. Under this procedure, unpaid subcontractors or suppliers may serve the stop payment notice on the public entity and the direct or "prime" contractor, causing the public entity to withhold 125% of the funds identified in the stop payment notice from the direct contractor unless the parties reach a settlement agreement or the issue is decided through litigation, arbitration or mediation.
There is however an alternative procedure available to direct contractors to expedite the determination of whether a stop payment notice is valid and to possibly obtain an early release of the funds withheld by the public entity.
Learn more about the process for direct contractors to release a stop payment notice and for subcontractors and suppliers to challenge the process in our in-depth article.
What do you do about your Mechanics’ Lien When the Developer Files Bankruptcy?
The mechanics' lien is a powerful tool to secure payment of unpaid construction related debts. However, dealing with a mechanics' lien foreclosure after the owner of the property files bankruptcy can be a tricky business.
There are several necessary steps a claimant should take to ensure their mechanics' lien is protected, as well as options to perfect it.
Visit our in-depth article to learn more about the ins and outs of mechanics' liens and the associated legal concepts which must always be considered.
Ten Tips for Construction Creditors
Many contractors, subcontractors and suppliers are suffering at the hands of those who fail to pay for the work or materials they supply to construction projects. That's why we've put together a brief outline of ten tips to keep in mind when dealing with delinquent construction accounts.
Visit our article to learn the tips you'll need to avoid the pitfalls of unpaid accounts from calendaring your collection deadlines to keeping up-to-date documentation of your claim.
The Importance of Preliminary Notices on Private Works Projects
Time and time again I receive calls from subcontractors and suppliers who find themselves faced with a customer who is either unwilling or unable to pay for labor or materials supplied for a private works project. As an attorney, the first question I usually ask is “did you serve a Preliminary Notice?” The second question I usually ask is “did you serve the Notice within twenty (20) days after first furnishing labor, service, equipment or materials to the job site?” The answers to these questions will often determine the ability to collect on the claim.
Learn more about the importance of Preliminary Notices on private works projects in our in-depth article.