Resources & FAQ | Construction Payment Help | Tridmag Capital LLC

Question 1

How does AR collections work for construction companies?

Accepted Answer

Accounts receivable collections in construction follows a structured process: we review your outstanding invoices and contracts, identify the strongest leverage points (lien rights, bond claims, contract terms), and begin systematic outreach to the debtor. We escalate through demand letters, formal notices, and lien filings as needed until payment is secured. Unlike general collections, construction collections requires deep knowledge of lien laws, retainage rules, and pay-when-paid clauses — which is why we work exclusively in this industry.

Question 2

When should I hire a collections firm instead of handling it myself?

Accepted Answer

You should consider professional collections when: an invoice is more than 60 days past due with no clear payment commitment; the debtor has stopped responding to your calls and emails; the amount owed is significant enough to affect your cash flow; lien deadlines are approaching and you haven't filed; or you've already sent multiple follow-ups with no result. The longer you wait, the harder recovery becomes — lien rights expire, debtors restructure, and leverage diminishes. Earlier is almost always better.

Question 3

What is a mechanics lien and how does it help me get paid?

Accepted Answer

A mechanics lien is a legal claim against a property that you helped build, improve, or supply materials for. It attaches to the property's title, which means the owner cannot sell or refinance without resolving the lien. This makes it one of the most powerful tools available to contractors, subcontractors, and suppliers. However, mechanics liens come with strict deadlines — typically 60 to 90 days from last furnishing, depending on the state — and specific notice requirements. Missing these deadlines permanently waives your lien rights.

Question 4

What is a pay-when-paid clause and does it affect my right to collect?

Accepted Answer

A pay-when-paid clause in a subcontract states that the general contractor will pay the subcontractor after the GC receives payment from the owner. Courts interpret these clauses differently by state — some treat them as a timing mechanism only (you can still collect eventually), while others treat them as a true condition that shifts the risk of owner non-payment to the sub. Even in states with strong pay-when-paid enforcement, there are often exceptions and workarounds. We review your contract language and applicable state law to determine your best path forward.

Question 5

What is retainage and when am I entitled to it?

Accepted Answer

Retainage is a percentage of each payment — typically 5% to 10% — that the owner or GC withholds until project completion or a defined milestone. It's meant to ensure the contractor finishes the work, but it's frequently held longer than the contract allows. Your right to retainage release is governed by your contract and, in many states, by statute. If retainage is being withheld beyond the contractual or statutory deadline, that is a recoverable debt — and we pursue it the same way we pursue any unpaid invoice.

Question 6

What if the GC or owner claims the work was defective?

Accepted Answer

Defect claims are one of the most common tactics used to delay or avoid payment. The key is documentation: photos, inspection reports, change orders, and written communications that show the work was performed as specified. We help you organize and present this evidence to counter defect claims and separate legitimate disputes from bad-faith withholding. In cases where a genuine dispute exists, we work to negotiate a fair resolution rather than letting the debtor use the dispute as an indefinite excuse not to pay.

Question 7

Can you help if the GC or owner has filed for bankruptcy?

Accepted Answer

Bankruptcy complicates collections but doesn't necessarily end your recovery options. If you have a valid mechanics lien filed before the bankruptcy petition, that lien may survive the bankruptcy as a secured claim against the property. Bond claims on public projects are generally unaffected by a GC's bankruptcy. We assess your specific situation — lien status, bond coverage, contract terms — and advise on the best available path given the bankruptcy proceedings.

Question 8

How much does it cost to use Tridmag Capital LLC?

Accepted Answer

We work on a contingency basis — meaning we only get paid when you do. There are no upfront fees, no retainers, and no hourly charges. Our fee is a percentage of what we recover. If we don't collect, you owe us nothing. This model keeps our incentives fully aligned with yours: we are motivated to recover as much as possible, as quickly as possible.

Question 9

What types of construction companies do you work with?

Accepted Answer

We work with contractors, subcontractors, and material suppliers of all sizes across all trades — electrical, plumbing, HVAC, concrete, framing, roofing, drywall, landscaping, and more. We handle claims on residential, commercial, industrial, and public projects. Whether you're a two-person specialty sub or a mid-size general contractor, if you're owed money on a construction project, we can help.

Question 10

How long does the collections process take?

Accepted Answer

It depends on the debtor and the complexity of the claim. Many cases resolve within 30 to 90 days once we begin formal collections activity — especially when lien rights are intact and the debtor wants to avoid a lien on their property. More complex disputes involving litigation referrals or bankruptcy proceedings can take longer. We give you a realistic timeline assessment during your free case review and keep you updated throughout the process.

Know your rights. Know your options.

Key concepts every contractor should know.

Lien Deadlines Are Not Flexible

Document Everything in Writing

Send Preliminary Notices Early

Don't Sign Lien Waivers Without Payment

Answers to the questions contractors ask most.

Have a specific situation?