Since 1983, Levy | von Beck | Comstock | P.S., has provided credit and collection assistance to a variety of construction related businesses, including:
Building Material Distributors
During the past 15 years alone, our firm has recovered on average over $8,000,000 each year just in principal for creditor clients of the firm. Here are the totals for those 15 years through June 1, 2016:
- Principal Recovered and Returned to Clients: $124,533,875.96
- Late Charges Recovered and Returned to Clients: $463,210.11
- Attorney’s Fees Recovered and Returned to Clients: $234,389.88
In addition, we have processed and mailed over 220,000 preliminary notices, notices to contractors, interim notices and intents to lien. The firm has also recorded many thousands of mechanic’s liens on private projects as well as bond claims on state and Federal – Miller Act projects throughout the United States.
Our core business model is simple:
- Provide a cost effective solution to help our clients protect their receivables at the point of sale.
- Provide timely and cost effective collection assistance.
- Be available when clients call or email.
Preserving our clients’ lien and bond claim rights has proven to be the most cost effective strategy to minimize write-offs and reduce DSO. In addition, this strategy permits clients to accept contracts and purchase orders they would otherwise have declined. Why? Because lien and bond claim rights increase the number of individuals who are liable for payment by potentially holding the general contractor, property owner, surety, and possibly a tenant responsible for payment, depending on the project. That is the power of preserving lien and bond claim rights. There is simply no other remedy that even comes close to achieving this type of security for your receivables.
Here’s something to consider: Suppose your customer purchases $250,000 worth of construction material or services and defaults by not completing his contract. If that occurs, he might be unable to pay for your services or materials, and if the customer and guarantor files bankruptcy, your receivable is lost.
Think about the implications! If your company generates a 15% net profit margin but has to write off a $250,000 receivable, it would require new sales of $1,666,666 to recover the principal amount of the lost receivable. And that’s $1.6M in sales over and above your expected annual revenues.
As you probably know, preserving lien rights is generally a four step-process: 1) Mailing a preliminary notice, 2) Tracking your deadlines, 3) Recording a lien or submitting a bond claim, and 4) Foreclosing the claim. Very few distributors and contractors are adequately staffed or trained to handle these tasks internally, so they outsource to a vendor. Unfortunately, very few vendors are adequately staffed or trained to do the work and often rely on external resources to provide the correct state forms as well as information about deadlines.
Levy | von Beck | Comstock | P.S. has accumulated more than 80 years of collective experience in this area of construction law. Our firm obtains lien statute information directly from the legislative digests, we construct and regularly update our own internal summaries of the statutes, and we pay an annual fee for direct access into a national title database. Our staff tries to obtain two independent sources of project verification on each notice request, and we promptly inform our clients of any project issues that may impact their rights when the notice is processed.
Of course, there are other strategies that suppliers, contractors and other professionals can utilize to hedge their bets, and our staff has assisted clients in understanding and implementing the strategies listed below:
- Personal guaranties from customers
- Third-party corporate guaranty
- Promissory notes
- Deed of trust
- Perfected security interests
- Pink slips on company vehicles
- A restriction on credit limits
- Standby letter of credit
We have discovered over the years that most credit departments tend to be understaffed and yet responsible for managing an increasing number of customers and credit issues. Levy | von Beck | Comstock | P.S. is available to help those credit professionals with timely answers to the most difficult questions. Even if you are not an existing client of the firm, we can certainly provide resources and strategies for dealing with your immediate concerns, so please don’t hesitate to give us a call.
Levy | von Beck | Comstock | P.S., can also assist clients needing a simple customer demand letter through the litigation process and post judgment recovery.
Please click on appropriate links below for additional information or services:
- Request a Preliminary Notice
- Request a Lien or Bond Claim
- Fees and Rates
- Lien and Bond Claim Resources – Lien Summaries
- Obtain a copy of our Lien Perfection Services Agreement
Would you like to see a list of common terms and definitions relating to perfection of lien rights, bankruptcy, garnishments, Security Interests, Pay-If-Paid Provisions, etc.? Click Here to Be Redirected to our Tips & Terminology Page