Preliminary notices are a valuable resource to protect your right to payment in the event of slow pay, short pay, or no pay situations. Because of this, it is critical to always send a pre-lien at the start of every project. However, although a pre-lien can help you get paid faster, it is significantly different from collection services.
Collection companies have earned a bad reputation in the construction industry. As a result, most contractors dislike dealing with collection agencies and will sometimes even be uncooperative. On the other hand, preliminary notices are seen in a positive light because they are as valuable a tool for GCs and property owners as they are for you. Be sure to read our article on how “Preliminary Notices Benefit the Entire Payment Chain” to learn more about the benefits of prelims for all parties involved.
At CNS, we are strictly a data verification business. We do not offer collection services in order to ease the pre-lien information gathering process and maintain positive relationships between subcontractors or material suppliers and their respective customers.
Continue reading to learn about our decision not to offer collection services in order to benefit our customers.
The Issue With Collection Services Alongside Construction Documents
Relationships between contractors and their customers are often built on trust. And while documents like prelims serve to protect your rights in the event of payment disputes, they don’t negatively impact your relationship with your customer because they are meant to benefit them as well.
However, if your customer receives a call to gather information on a project you are working on (or about to work on) and it comes from a collection agency, even if it is not for collection services, it can be misinterpreted. This can, in turn, give your customer the wrong idea, cause a strain on your working relationship, and make it more difficult for your pre-lien to be prepared correctly. If your pre-lien does not contain all the necessary information, you risk losing your mechanics lien rights to secure due payment.
This is an issue that many pre-lien providers run into because they also offer collection services. These companies often have “lien,” “collection,” or “recovery services” in their names, raising a red flag for the parties being contacted for pre-lien information and leading to problems down the contracting chain.
Why CNS Isn’t a Collection Company
At CNS, our services rely heavily on information verification inquiries (phone calls, emails, etc.) to provide in-depth research for the preparation of our customers’ preliminary notices. We do this because even the slightest mistake can render your prelim ineffective.
By inquiring for information, our process finds missing information in prelims and verifies their accuracy to protect your lien rights. As a strictly data verification business, we avoid straining your relationship with your customer or having our inquiries be perceived in a negative light (what happens when a collection company calls).
When your property owner and general contractor receive a preliminary notice from Construction Notice Services (CNS), there isn’t any confusion about our intention. Our name reflects the business we’re in — construction notices, not construction collections.
Choosing CNS for Your Pre-Lien Information Gathering
In order to provide our customers with the best services, CNS refrains from offering collection services so as to avoid being associated with the negative stigma of collection agencies.
We work as an extension of your business and, as such, are committed to maintaining positive relationships between our customers and their customers. Don’t upset your customers or make them feel blindsided due to a misinterpretation; simply protect your lien rights with CNS.
Contact us today to get a prelim started.
Prefer to call? You can reach us at 800-366-5660.
Disclaimer: CNS is not an attorney, and if you need legal advice, please contact one.