Dispatch #14 - Lien Rights, E-signatures (contract tips)
Protect your lien rights. This is always important, but even more so now:
During times of severe workflow disruptions, it’s easier to let things fall through the cracks and miss filing deadlines;
Between job schedule changes and possible cancellations, “completion dates” and filings of the same might be different than what you’re expecting;
It’s more difficult to get releases from your suppliers and subs;
Don’t give your customers any excuses to not pay you on time.
Consider getting help from a third-party lien tracking and filing service to help your firm stay “on it” while people are working from home and office staff has reduced hours or layoffs. A cloud-based lien-related database is a company-wide risk management asset, independent of any one individual.
E-signatures
If you’re not using one already, consider migrating to electronic signatures. Save time instead of chasing down wet signatures, or signing/scanning/emailing documents. Where allowable (and it’s time for the industry to push this forward), use for:
Customer, supplier and subcontractor contracts
Change orders
Approval of schedule adjustments
RFI sign-offs
Lien releases
Employment agreements, layoff notices, pay, and benefits change agreements with employees
Corporate documents
Etc.
Use an industry-leading, reputable company. And there might be e-signature capability from within your existing accounting and/or project management software.
Need help with this or other financial matters faced by construction contractors? Let’s talk!
David Stern CFO makes every effort to provide useful and accurate information. This content, however, is not intended as a substitute for specific business-related financial advice. We disclaim all warranties and liabilities from its use.