The End-of-Year Deadline “Curveball”

President Trump recently issued a new Executive Order, and it’s throwing a bit of a curveball into the end-of-year calendar. All federal executive departments and agencies will be closed on Wednesday, December 24, 2025, and Friday, December 26, 2025.  While a five-day holiday weekend sounds great for federal employees, it creates some “holiday homework” for contractors and suppliers tracking strict lien deadlines.

Read the Executive Order here

Is it a “Real” Federal Holiday?

Technically, this order is an administrative closure of federal executive offices rather than a blanket declaration of a new federal legal holiday for all purposes. The order treats these dates as within the scope of federal pay and leave statutes for federal employees.

Because it doesn’t automatically create a universal “federal holiday” for private filing deadlines, the impact on your specific lien depends entirely on state law.

How This Affects Your Deadlines

The practical effect on your mechanics lien depends on how your specific state handles “legal holidays” and office closures:

• The “Next Day” Rule: Many states push a deadline falling on a holiday or weekend to the next business day.
• The “Previous Day” Rule: Some states are less forgiving and push the deadline to the previous business day.
• State Definitions: Some states only recognize holidays listed in their own statutes, while others include any day “appointed by the President”.
• Local Office Reality: Even if the date isn’t a “legal holiday,” your local county recorder or clerk’s office might decide to close anyway if they follow federal schedules.

Don’t Wait and See

Because there isn’t yet clear guidance on how every local jurisdiction will interpret these closures, we recommend a conservative filing posture.

The Best Defense: Aim to get your notices, liens, and bond claims out before the holiday break rather than relying on a potential extension that might not exist. Don’t let an administrative closure turn into a lost lien right. Verify the operating status of your specific recording office now to ensure you aren’t caught off guard.

The post Unexpected Holiday Closures: What the 2025 Executive Order Means for Your Deadlines appeared first on Levelset.

Mark your calendars! The law law applies to contracts entered into on or after January 1, 2026. So now’s the time to start updating your contracts and internal processes.

Why the Change?

If you’ve spent any time on a construction site, you know surprises happen- delays, scope changes, you name it. Until now, resolving those changes on California private projects has often been a slow, expensive mess. Cue the “Private Works Change Order Fair Payment Act.”

SB 440 doesn’t replace any current prompt payment or dispute resolution laws. Rather, it adds a structured claims process to make things run faster, fairer, and less litigious. The goal is to get everyone paid on time and keep the projects moving.

Read the full text of California Senate Bill 440 here

What the New Process Looks Like

Here’s a quick breakdown of how SB 440 structures the process for change-order and time-extension claims:

1. Submitting a Claim

Contractors or subs must submit a detailed, documented claim if they’re requesting extra time or payment.

2. Owner’s Response Timeline

The new law requires a timely response from the property owner:

• 30 Days to Meet and Confer: After receiving the claim, the owner must meet and confer with the contractor/sub within 30 days.
• 10 Days to Identify Disputed/Undisputed Portions: Within 10 days of that meeting, the owner must provide a written statement identifying which portions of the claim are disputed and which are undisputed.
  • Note: If the owner fails to issue a written confirmation within those 10 days, it’s assumed the entire claim is disputed.

3. Payment and Penalties

The new law introduces stronger leverage for contractors:

• 60 Days for Payment: Any undisputed portions of the claim must be processed and paid within 60 days after the owner issues their written statement.
• Steep Interest Penalty: If undisputed amounts aren’t paid on time, they are subject to a hefty interest rate of 2% per month (24% annual rate)- including those later deemed owed after the dispute.

What if There’s Still a Dispute?

If parts of the claim remain disputed after the meet and confer, SB 440 requires that those portions proceed to non-binding mediation before any litigation or arbitration. The owner and claimant share the mediation costs equally.

Stop Work Option

If an owner ignores the timelines or refuse to engage in mediation, contractors can issue a stop work notice. If things don’t move forward, work can be suspended 40 days after that notice.

Action Plan: What to Do Before January 1, 2026

To ensure your business is ready for the new law, here are some steps you can take:

• Review and Update Contracts: Examine your contract templates for compliance with SB 440’s new change order procedures.
• Train Your Team: Ensure your project managers and team members are fully trained on the new 30, 10, and 60-day deadlines and the required documentation standards.
• Improve Documentation: Clear, detailed evidence remains your best defense. Standardize your claim documentation for both time extensions and payments.
• Check Subcontractor Procedures: If you’re a general contractor, make sure your contracts clearly lay out expectations for handling subcontractors’ claims against the owner, as you may be required to present the claim on their behalf.

SB 440 is all about fairness, speed, and clarity. It encourages better communication and faster resolutions- something everyone in the construction industry can appreciate.

The post California SB 440: What the New “Fair Payment Act” Means for Contractors appeared first on Levelset.

Overview of Georgia House Bill 137

• Bill: Georgia House Bill 137
• Title: Contracts; increase dollar value of certain public works contracts exempt from provisions relating to retention of contractual payments
• Sponsors:
  • Rep. Victor Anderson
  • Rep. Eddie Lumsden
  • Rep. Lee Hawkins
  • Rep. Bill Yearta
  • Rep. Rob Leverett
  • Rep. John LaHood
• Effective Date: July 1, 2025

What’s Changing with HB 137?

Previously, Georgia’s “Little Miller Act” (O.C.G.A. § 13-10-1 et seq.) required payment and performance bonds for public construction contracts valued at $100,000 or more. HB 137 is stepping things up! The new law raises this minimum contract amount from $100,000 to $250,000.

Think of it like this: the Little Miller Act is designed to protect subcontractors, laborers, and material suppliers on public projects, since you can’t typically file a mechanic’s lien against publicly owned property. Payment bonds ensure you get paid for your work, even if the general contractor runs into trouble. Performance bonds guarantee the project gets completed as agreed. HB 137 acknowledges that construction costs have risen significantly, making the old $100,000 threshold trigger bond requirements on many smaller projects that might not need that level of protection.

How Does This Impact You?

This is a win-win for many in the Georgia construction community:

• For Smaller Projects: If you’re bidding on public projects under $250,000, you might find a bit more flexibility. The increased threshold could mean fewer projects require the costly and time-consuming process of securing a payment and performance bond. This could streamline the bidding process and potentially reduce administrative burdens.
  • However, it’s crucial to understand that for these smaller projects, contractors will not be able look to a payment bond to collect unpaid moneys
• For Larger Projects: The core protection of the Little Miller Act remains robust for contracts exceeding $250,000. You’ll still need to be diligent in understanding and securing your payment and performance bond rights on these larger projects.
• Economic Relief for Local Governments: Local municipalities can now undertake smaller improvements without the added expense and complexity of bond requirements, potentially freeing up resources for more community projects

What Should Contractors Do Next?

While this change is generally positive, it’s always a good idea to be prepared. Here’s a quick checklist:

• Review Your Bidding Strategy: Adjust your approach for public projects, especially those in the $100,000 to $249,999 range.
• Update Internal Policies: Ensure your internal contract and risk management protocols reflect the new bonding thresholds.
• Stay Informed: Keep an eye on any further legislative developments or guidance from state agencies regarding these changes.
• Consult Your Team: Talk to your legal counsel and surety providers to understand the full implications for your specific business.

This updated threshold aims to create a more efficient and responsive environment for public works in Georgia, while still ensuring essential protections are in place. By staying informed, you can make the most of these changes and continue to build successfully in the Peach State!

The post Georgia Contractors: New Payment Bond Threshold on Public Projects appeared first on Levelset.

There are three main ways contractors can effectively deal with construction cost increases: financing building material purchases, adding a margin to their estimates, or including an escalation clause in the contract.

1. Protect your Lien Rights

Protecting your lien rights is one of the most critical steps in protecting your right to payment for what has been delivered to a job site.

Most states base the amount allowed on a lien on the true and fair value of the material and labor delivered to the job site, so even if your contracts list pre-tariff pricing, there may be recourse.

Make sure to check our state-by-state guide Here, and make sure to understand if you are in a state that requires an amended preliminary notice if costs increase substantially.

2. Increase your margins

Contractors can raise their prices to their customers in order to offset potential cost increases. How much to raise prices depends on the length of the project and the materials you are using. 

One problem with raising margins: There’s no guarantee that prices won’t increase more during the duration of the project. You may be limited in your ability to recapture that lost income. 

And with intense competition for projects, contractors who attempt to cover potential cost increases in their price may find themselves losing bids. Other contractors may not be keeping pace with pricing changes.

That’s not necessarily a bad thing. Competing on price is almost always a lose-lose proposition. Taking a low- or no-margin job may be an effective way to get your foot in the door with a GC or developer — but it’s not an effective long-term strategy. Instead, focus on the value that your company brings to the job.

3. Include an escalation clause

An escalation clause in the contract allows contractors to recoup costs caused by price increases. The clause usually stipulates a percentage increase that costs must exceed before the clause kicks in. 

For example, an escalation clause may say that, if material or labor costs increase more than 3% during the project, the contractor has the right to request additional funds from the owner for the increase. 

These clauses protect contractors and owners alike. Without an escalation clause, contractors will raise their bids to cover potential price increases. With an escalation clause, contractors can provide a more competitive estimate without additional margin for risk.

Watch the webinar: How to use contract clauses to defend against material price swings

The rise in construction costs is expected to continue

All contractors operate on credit, effectively financing their customer’s projects with their own money. An increase in construction costs means higher credit risk. Don’t forget that problems with payment add costs to the job as well. 

Even if you double your margins, a missed payment can erase any potential gains you might have earned. Make sure you are also taking steps to protect your payment and get paid faster on every project.

Concerned about how you can protect your bottom line and speed up slow payments as a result of sharply rising costs? Request a call Here from one of our payment experts today.

The post 3 Ways to Reduce Payment Risk With The New Tariffs And Rising Construction Costs appeared first on Levelset.

In recent years, we’ve seen a significant shift in the industry landscape. More women are entering construction-related fields, bringing fresh ideas and approaches to longstanding challenges. This is particularly evident in the realms of construction technology and credit, where women are leveraging their expertise to streamline processes, improve efficiency, and drive profitability. From developing cutting-edge software solutions to implementing sophisticated financial strategies, women are proving that diversity in thought and experience leads to better outcomes for everyone in the industry.

However, challenges persist. Women in construction often face unique obstacles, from unconscious bias to a lack of mentorship opportunities. Despite these hurdles, many are thriving and paving the way for future generations. By sharing their stories and insights, these trailblazers are not only inspiring others but also actively shaping a more inclusive and innovative future for the construction industry. As we look ahead, it’s clear that embracing diversity and supporting women in construction technology and credit isn’t just the right thing to do – it’s a strategic imperative for any company looking to stay competitive in an evolving marketplace.

The post Empowering Women in Construction: Insights from the Intersection of Technology and Credit appeared first on Levelset.

At this dynamic event, attendees will experience the National Craft Championships, the Construction Management Competition, the National Excellence in Construction® Awards, and the Construction Workforce Awards. Plus, industry experts will take the stage to share insights on the latest trends, technology, and strategies shaping the future of construction.

Levelset + Procore: Helping Construction Businesses Scale Confidently

Levelset is excited to attend this event alongside Procore at Booth #1307! We’re looking forward to connecting with industry leaders, contractors, and suppliers to discuss how we help teams get paid faster, reduce financial risk, and scale their businesses with confidence.

As part of the Procore family, Levelset empowers construction teams by streamlining lien rights management, automating compliance, and providing visibility into payment processes. By ensuring predictable cash flow and reducing administrative burdens, we help businesses focus on what they do best – building great projects.

Meet Us at Booth #1307!

If you’re attending ABC’s Annual Convention, don’t miss the chance to visit Booth #1307 and connect with us! Whether you’re looking to improve financial stability, automate processes, or simply learn more about how Procore and Levelset can help your business grow, we’d love to chat.

Join us in celebrating 75 years of ABC’s impact on the industry—see you in Las Vegas!

The post Join Levelset and Procore at ABC’s 75th Annual Convention in Las Vegas! appeared first on Levelset.

Illinois Enacts HB 4660 to Streamline Notice Process

On August 9, 2024, Illinois Governor JB Pritzker signed HB 4660 into law, simplifying how subcontractors can secure their mechanics lien rights. Let’s look at these changes, when they go into effect, and how they help subcontractors get paid what they’ve earned.

Bill Overview

• Title: House Bill 4660: Mechanics Lien – Notice
• Sponsor(s): Rep. Bob Morgan & Sen. Elgie Sims
• Effective Date: January 1, 2025

The Current Process

Under 770 ILCS 60/24, subcontractors in Illinois must provide a Notice of Intent to Lien within 90 days of the last date they furnished labor and/or materials to the project. This requirement is reasonably straightforward. However, the delivery method makes it difficult for subcontractors. The notice must be either personally served or mailed by registered or certified mail, with a return receipt requested. Delivery must be limited to the addressee only.

This method of mailing is particularly burdensome and presents a litany of challenges. The addressee may not be available at the time of delivery. Service can’t be completed if the individual is out of the office or on vacation. Even worse, the addressee may refuse to sign for it, and a signed green card is crucial when it comes to enforcement. This can add undue delays that could call into question whether the individual received notice. Anyone who regularly uses USPS can attest that it is not always the most reliable; mailing can be delayed or not even served due to internal system issues.

What’s Changing in 2025?

The new law introduces several updates, most notably by expanding the delivery options for notices. Starting in 2025, subcontractors will have the following methods of delivery available to serve this notice:

• Certified or registered mail with return receipt requested (still an option, but delivery restricted to the addressee is not required);
• A nationally recognized delivery company with tracking service (such as FedEx, UPS, or DHL); or
• Personal service (handing the notice to the owner or agent).

First and foremost, eliminating “delivery restricted to the addressee” is a critical update to Illinois’ lien laws. However, adding major delivery carriers like UPS and FedEx helps ensure that subcontractors can track the delivery of their notices, increasing reliability and reducing the risk of missed or delayed deliveries.

Why This Matters for Subcontractors

Lien notices are critical for subcontractors to secure payment for their work. Under the current system, delays or missed deliveries due to issues with USPS or the addressee’s availability can result in an unenforceable lien. Using services like FedEx or UPS provides more flexibility, giving subcontractors the tools to ensure notices are timely and tracked correctly. This vast improvement increases the chances of a subcontractor’s lien being upheld.

Additionally, the new law clarifies when the notice is considered served. It is deemed served as soon as it is placed with the delivery service or in the mail. This eliminates ambiguity and helps subcontractors comply with the 90-day timeline for filing liens.

In short, HB 4660 is a win for subcontractors. The new law streamlines the notice process, making it easier to protect lien rights and get paid for work. By offering more reliable delivery options, clearer service timelines, and reduced dependence on outdated postal services, subcontractors can ensure that their notices reach the right people on time and are backed by proper tracking.

The post Changes to Illinois’ Mechanics Lien Laws Simplifies Notices in 2025 appeared first on Levelset.

Trusted by the Nation’s Largest Suppliers Since 2008

Since 2008, Levelset has been trusted by some of the nation’s largest construction suppliers to secure lien rights and help merchants better manage payments. Our solutions are designed to simplify and streamline the lien management process, providing unparalleled support and efficiency.

Send Accurate Prelims at Scale

Companies that partner with Levelset confidently manage preliminary notices by leveraging our research team. We verify information against our extensive database and investigate your job using hands-on resources, ensuring your prelims are more accurate and timely.

Save Time with Automated Lien Waivers

Simplify your paperwork by automating lien waivers for thousands of jobs based on Accounts Receivable or paid invoices. Our automated system ensures that lien waivers are sent promptly, reducing the administrative burden and freeing up your time.

Better Manage Deadlines to Secure Lien Rights

Stay on top of critical lien document deadlines with our notification system, which alerts you when a deadline is approaching. This allows you to confidently secure lien rights on projects for your customers and helps ensure you don’t miss a crucial step in the process.

Levelset supports the construction industry with innovative solutions that drive efficiency and success. We are excited to bring these powerful tools to even more professionals, helping them achieve their business goals and thrive in a competitive market.

The post Levelset and American Express Team Up to Empower the Construction Industry appeared first on Levelset.

Colorado Verified Statement of Claims on Public Projects

A Colorado Verified Statement of Claim (VSOC) ensures subcontractors and suppliers get paid for labor and/or materials provided to a public construction project. In CO, if a contractor or sub hasn’t been paid, they can file a VSOC with the public entity in charge of the project. The VSOC essentially operates as a lien on project funds, meaning the public entity must hold onto the claimed amount until the payment dispute is resolved. The claim must be signed under oath and only include amounts due for work or materials provided. However, as highlighted in the recent Wadsworth case, understanding the proper scope of what can be included in a VSOC is crucial, as filing an excessive or disputed claim can lead to severe legal and financial consequences.

Wadsworth Case Background

The case in question is Ralph L. Wadsworth Constr. Co. v. Reg’l Rail Partners

Project Snapshot

• Public Entity/Owner: Regional Transportation District (RTD)
• General Contractor: Regional Rail Partners (Regional Rail)
• Subcontractor: Ralph L. Wadsworth Construction Company, LLC (Wadsworth)

In this case, Wadsworth was hired as a subcontractor on the North Metro Rail Line project, with a contract value of nearly $60 million with Regional Rail. However, the project faced a slew of delays and disputes. As the project neared completion, Wadsworth filed a VSOC claiming almost $13 million from RTD, the public entity overseeing the project. RTD bonded off the claim, and several months later, Wadsworth sought to enforce it. RTD contested the claim, arguing that it was excessive. At trial, the court ruled in favor of Wadsworth, awarding about $5.7 million. RTD appealed the decision.

The appeals court focused on two main issues:

1. Whether unliquidated breach of contract claims for delay damages could be included in a VSOC.
2. The consequences of filing an excessive claim.

Permissible Scope of a CO Verified Statement of Claim

Under Colorado’s Public Works Act §38-26-27, subcontractors can file a VSOC for “the amount due and unpaid” for “furnished labor, materials, sustenance, or other supplies used or consumed by a contractor or… subcontractor in or about the performance of the work contracted to be done” or for “laborers, rental machinery, tools, or equipment to the extent used in the prosecution of the work.”

The court found that delay damages – such as lost profits, overhead costs, and unapproved change orders – did not fit within the scope of what can be claimed under the statute. These damages are considered “unliquidated,” meaning they are not fixed or agreed upon at the time of filing. The court emphasized that a verified statement of claim should only include amounts that are clearly due, such as labor or materials already provided, rather than future or disputed claims.

As the court noted, “Due is defined as ‘[i]mmediately enforceable’ or ‘[o]wing or payable; constituting a debt.’ In other words, an amount is not ‘due’ if it will only be owed upon some contingency or after the satisfaction of a condition precedent.” The ruling makes it clear that subcontractors cannot include unapproved or disputed amounts in their claims.

Impact of Filing an Excessive Claim

The court also addressed the consequences of filing a claim for an amount greater than what is actually due. According to Colorado law, if a subcontractor files an inflated claim, especially when they know it is excessive, they forfeit the entire claim.

The appeals court ruled that Wadsworth’s $12.7 million claim was excessive due to the inclusion of unapproved change orders and disputed delay damages. As a result, despite the trial court’s earlier award of $5.7 million, the appeals court ruled that Wadsworth forfeited the entire claim. This underscores the serious consequences of overestimating the amount due and highlights the importance of ensuring that claims are reasonable and supported by clear evidence. Importantly, the court found that Wadsworth “knew” the claim was excessive because it included amounts not agreed upon by the parties, such as unapproved change orders and delay damages. This underscores that subcontractors must be mindful of their knowledge when submitting claims to avoid risking forfeiture.

Key Takeaways

The Wadsworth case serves as a strong reminder for subcontractors to ensure claims are based on amounts that are clearly due and fully supported by documentation. The court ruled that delay damages, unapproved change orders, and impact costs are not automatically lienable, as they are often unliquidated and contingent on future events. This reinforces the need to include only amounts for work that has already been performed, such as labor and materials. Additionally, submitting an excessive claim can have severe consequences, as seen when Wadsworth’s $12.7 million claim was reduced to $5.7 million, and ultimately forfeited due to the inclusion of disputed and unsubstantiated amounts.

The decision also underscores the importance of accurate and thorough documentation. Wadsworth’s failure to finalize or execute change orders contributed to the court’s decision to invalidate part of its claim. For construction professionals, this case highlights the need to file only for undisputed, liquidated amounts and to keep disputed items separate. Moreover, the court’s focus on Wadsworth’s “knowledge” of the claim’s excessiveness serves as a crucial reminder that subcontractors must carefully consider whether they are filing claims for amounts that are genuinely owed and agreed upon by all parties involved.

While this case dealt with claims under the Colorado Public Works Act, the result may have ripple effects on private mechanics liens as well, making it crucial for contractors to be cautious when filing claims for damages beyond labor and materials. The Wadsworth case sets a precedent that may influence both public and private construction disputes moving forward, urging subcontractors to avoid claims that are overly broad or uncertain.

The post The Consequences of Overstating Claims Under Colorado’s Public Works Act appeared first on Levelset.

Building a Strong Foundation Together

Kodiak’s partnership with Levelset isn’t just transactional; it’s strategic. From day one, Kodiak saw the value Levelset brings to the table, especially in terms of providing tools and resources to support their credit professionals. Kodiak’s goal has always been to ensure their team has what they need to succeed, and Levelset’s lien and bond management tools, job radar, and risk management systems have allowed Kodiak to strengthen their payment processes. These tools offer a clear, reliable way to monitor construction payments and reduce risk, giving Kodiak peace of mind and control over their receivables.

Kodiak appreciates Levelset’s attention to detail that comes with every interaction. Whether it’s the precision of the tools or the responsive support team, Kodiak has felt that they’re in great hands. This attention to detail isn’t just about problem-solving; it’s about proactively helping Kodiak avoid issues before they arise, ensuring that every project is covered, and all the necessary steps are taken to protect their payment.

A Real Partnership

The trust between Levelset and Kodiak has been built on collaboration. As a locally led company, Kodiak values partners that align with their values and mission. The relationship goes beyond software—Levelset is a true ally, supporting Kodiak’s credit professionals with the tools they need to streamline workflows and eliminate manual processes. This partnership gives Kodiak the bandwidth to focus on what matters most: growing their business and serving their customers.

Transforming Payment Processes for Growth

With the support of Levelset’s lien rights management tools, Kodiak has been able to secure faster payments, reduce risk, and enhance day-to-day operations. As a result, Kodiak’s credit team now has the time and resources to focus on other critical tasks, which is key to their continued growth. The baseline of success that comes with using Levelset’s tools has allowed Kodiak to monitor payments more effectively and ensure the longevity of their business.

A Bright Future Ahead

Kodiak has grown tremendously over the years, and with Levelset by their side, they’re confident that growth will continue.

“I would highly recommend Levelset. I think the sky’s the limit for both Levelset and Kodiak.” – Darius McCurty, Senior VP & Controller 

The collaboration between Kodiak and Levelset is a testament to the power of a true partnership. By providing the tools and resources Kodiak needs to succeed, Levelset has helped transform their payment processes, improve efficiencies, and support their impressive growth. As Kodiak continues to expand, there’s no doubt that Levelset will remain an integral part of their journey forward.

The post Kodiak’s Full Story: How Levelset Helps Their Growth and Streamlines Payments appeared first on Levelset.