Project and Customer Red Flags-Commercial Collections

Sometimes it’s easy to look at a project or customer through rose colored glasses. Especially in a time when you are overworked, understaffed, and worried that the well of work might dry up. However, it’s important to keep an eye out for certain red flags that can majorly impact your ability to be paid on time. Or at all.

The attorneys at WFJ have been supporting construction companies for decades, and we’ve compiled a list of a few things that often lead to trouble later down the road.

  • Project Owner not paying general contractor or having financial problems
  • General contractor not paying your customer or having financial problems
  • Any party in contract chain files bankruptcy or is placed in receivership
  • General contractor or customer tells you to file a lien or bond claim
  • General contractor/subcontractor is terminated
  • Customer pays creditor on one project with proceeds from another project
  • Customer having difficulty obtaining credit, shopping for business loans
  • Quasi-public/private project
  • Tenant improvement projects
  • Customer not paying on time or paying in irregular amounts
  • NSF checks (to you or others)
  • Customer sells business or is talking about selling business
  • Loss of line of credit
  • Dismissal of key financial personnel
  • Problems covering payroll
  • Principal or third-party revokes personal guaranty
  • Secured party repossesses customer’s equipment or other collateral
  • Lawsuits or judgements
  • Federal or State Tax liens


Sometimes customers and projects don’t show any immediate red flags. If you are having trouble collecting on a project, it might be time to place your claims with Wagner, Falconer & Judd. Contact us to learn more about getting started.