The recent economic downturn in real estate development and
construction has significantly and negatively impacted contractors,
subcontractors, and material suppliers. Non-payment of receivables
is an ongoing problem even in good times, but even more so during
the current recession and recovery (albeit slow) period. Having
knowledge of one's alternative available legal remedies gives
contractors, subcontractors, and material suppliers a distinct
advantage, especially as the market for local contractors,
subcontractors, and material suppliers is growing to encompass the
entire country.
When a contractor, subcontractor, or material supplier
"sells" a job, it is selling three things - "labor,
materials, and credit." The sales department job is to sell
the "labor and/or materials," while the credit
department's job is to evaluate whether to extend credit on
such sales. These conflicting goals could result in friction
between the sales department and credit department. In
