Comments on: Getting Slow Paid? Try These Tips

By: Christopher G. Hill

Christopher G. Hill — Wed, 19 Aug 2009 15:40:53 +0000

Too true Tim. However, sometimes they are necessary, especially in this climate of unsure payment due to the economy. But I agree, they need to be used sparingly.

By: Tim Hughes

Tim Hughes — Tue, 18 Aug 2009 16:06:52 +0000

The real kicker with the 43-11 notices is that they can provide a path to personal liability. The real downside, and the real reason no one uses them, is that they provide a path to personal liability. As a lawyer, I love the concept, but from a business perspective they are salting the earth in the relationship with the contractor.

By: Christopher G. Hill

Christopher G. Hill — Sun, 16 Aug 2009 00:02:53 +0000

The 43-11 letters are essentially early warning letters to an owner that puts them on early notice of the possibility of a lien. Check out the Virginia Code site (Google it and it will come up) and find 43-11 for mote. .-= Christopher G. Hill´s last blog post ..When a Subcontractor Should Walk Away =-.

By: C. Carr Apple

C. Carr Apple — Sat, 15 Aug 2009 15:56:25 +0000

What is the 43-11 letters?
Thanks

By: Christopher G. Hill

Christopher G. Hill — Wed, 08 Jul 2009 14:37:36 +0000

Good point, these can be a great tool to keep the owner on its toes.

By: Anonymous

Anonymous — Wed, 08 Jul 2009 14:36:31 +0000

Subs rountinely fail to use 43-11 letters – a great tool to make sure you are paid on a timely basis.

GAR

By: Christopher G. Hill

Christopher G. Hill — Tue, 07 Jul 2009 12:18:23 +0000

Leigh and Andrea,

Thanks for the comments. While there is no silver bullet, the best a contractor or sub can do is draft their contracts in a way that best protects them.

Your insights are always helpful.

By: Leigh Monette

Leigh Monette — Tue, 07 Jul 2009 03:00:34 +0000

It's always been a tough spot for subs, but this economy just highlights their situation. If they don't bow to the GCs terms, someone else will instead (usually quite happily).

GCs are not much better off, as they end up whipsawed between slow-paying owners and the subs who relied on their reputation as a solid GC when signing the job.

Of course, everyone - including owners - is facing serious contraction in the credit markets.

Something has to break this loose. As I originally noted, this has never been a smooth process for all players, but the economic hiccups are exacerbating the problem and putting many projects and businesses under.

Like Andrea, I don't have a silver bullet either. But protecting every receivable, even if it means straining a relationship, is one key to survival in this climate.

By: Andrea Goldman

Andrea Goldman — Tue, 07 Jul 2009 00:20:52 +0000

or most subcontractors, particularly on public projects, they are forced to sign such onerous contracts that the GC can not only pay late, but pay less than the current RFP. Particularly in this climate, subs are so eager for work, that they will sign any contract to get the job. I recently had a client who was put out of business by the GC because his RFPs were not being submitted on time, and money was withheld due to a potential claim by his sub. I don't have the answer to this, but I agree that most construction companies do not mind the business aspect of their work as well as they should.

July 6, 2009 8:12 PM