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Why Consider Outsourcing Your Construction Company’s Collection Department

outsource collections
Implementing a solid collections strategy is crucial to getting paid what you are rightfully owed. Collecting on your construction projects should be the last thing you have to worry about, but getting paid on time—or sometimes even at all—is a huge issue the construction industry faces.

Getting paid for your company’s work is the whole reason you are in business. The collection process of any company is its lifeblood needed to survive. It is important to understand that your cash flow is only as good as your collections process. So, if you are having cash flow problems, the first place you need to look is at your collection strategy. Does your construction company have a solid collections process in place? If you don’t have a proper strategy, we can assure you that is why you are having cash flow problems. The sooner you have this process in place, the sooner you will get paid and avoid delays in prompt payment!

What Does a Successful Collection Process Look Like?

Two things need to be considered in the construction industry when creating a successful collection strategy. The first thing to consider is the company’s cash flow requirements. The second equally important thing is the steps the company must follow to have a valid lien. A lien allows a construction company to secure the amount owed for labor and materials provided to a project by giving the company a security interest in the project for the amount they are owed. The rules that must be followed to have a valid lien are different in all 50 states and are generally very complicated to understand. It is extremely important to make sure the rules are followed 100% correctly to ensure that you will get paid and to avoid any penalties for filing an invalid lien.

How to Set Up a Successful Collection Strategy

To set up a successful collection strategy, a construction company must overcome two huge tasks:

  1. Understand its cash flow requirements.
  2. Know and properly follow the states’ lien laws where they work.

A good accountant can address the cash flow question, but who can address the lien question? Oh, snap!! That means you have to talk to an attorney. We know that the consensus surrounding attorneys is that they are expensive and never return your phone calls. So, how can that lead to an effective, efficient, and successful collection strategy? Well, let’s be honest: if that were really the case, it wouldn’t! It’s imperative to find someone that already knows the lien process and can be your partner in business. If you don’t choose to work with an experienced attorney or lien/collections team knowledgeable of all the steps needed, you are taking a huge gamble for yourself and your company that could expose you legally if an invalid lien is filed.

Having grown up in the construction industry and starting her own material supply company, our founder realized that this was a real issue that most companies in the construction industry face. That is why we created an outsourced collection department for companies in the construction industry for a flat monthly fee. We work with your accounts receivable department to send all required notices and take the necessary steps to secure your owed amounts with a valid lien. We wanted to serve people nationwide with this service, which is why we offer liens and collections in all 50 states.

Don’t work for free

Collecting what is yours is crucial to the livelihood of your business. We have a team ready to take your call to protect what is yours, collect what is yours, and educate yourself on the front-end!

10 Reasons Why The Cromeens Law Firm is the Best Solution for Your Collection Strategy

  1. We know the exact steps that need to be taken to have a valid lien.
  2. You will be assigned your very own account manager. At any time, you can pick up the phone and find out what is going on with any of your files.
  3. We draft and send out any required notices and send you a copy of each one after it is sent.
  4. We are your outsourced collection department—not just a lien filing service. We will call all parties involved to determine why you are not getting paid.
  5. Having your notices, demand letters, and collection efforts come from a law firm packs an extra punch and sense of urgency you cannot replicate on your own.
  6. We never ever call in sick. You don’t have to pay us overtime or pay for health insurance.
  7. You can make us the bad guy. You can say you are just doing what your attorney said is necessary to protect your lien rights; it is nothing personal.
  8. We collect our clients’ money 90% of the time BEFORE ever needing to file a lien, saving you money!
  9. The clients that have trusted us with handling their collection department have a less than 1% write-off of their gross revenue, some even less than 0.01%!
  10. It is your rightfully earned money, and we will protect that.


Whether you are hearing about the importance of a collection strategy for the first time, or the 100th time, implementing a solid strategy is crucial to getting paid what you are rightfully owed. Running a construction company is a huge commitment and can be incredibly stressful. Having to worry about collecting on your construction projects should be the last thing you have to worry about, but let’s face it, getting paid on time—or sometimes even at all—is a huge issue the construction industry faces.

We offer flat-rate pricing for collections as well as our limited-availability subscription program! Contact us today to learn how our program can save you time and money and help your construction company become more profitable. Let The Cromeens Law Firm take the stress off your shoulders so you can work on the important things…like running your construction business! Call us today to see if you qualify: 713-715-7334.

This article is intended as a general educational overview of the subject matter and is not intended to be a comprehensive survey of recent jurisprudence, nor a substitute for legal advice for a specific legal matter. If you have a legal issue, please consult an attorney.

Karalynn Cromeens

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