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Construction glossary

What is AIA Billing?

AIA billing refers to a standardized method of construction project billing developed by the American Institute of Architects (AIA). This billing system is widely utilized in the construction industry due to its accuracy, traceability and efficiency. It involves using specific forms, such as the G702 Application and Certification for Payment and the G703 Continuation Sheet. These AIA documents help manage and streamline the payment process, offering a detailed breakdown that shows the work completed and the costs associated with each phase of the project. The AIA billing system, therefore, ensures transparency, keeping all stakeholders informed about the project's financial aspects, which mitigates risks and potential disputes over costs and payments.

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Other construction terms

Notice of Intent to Lien (NOI)

What is a Notice of Intent to Lien (NOI)?

A notice of intent to lien (NOI)鈥攕ometimes called an intent notice or notice of non-payment鈥攊s a legal document that serves as a final warning from a subcontractor or supplier to the property owner, developer, or general contractor (GC) indicating their intent to file a mechanic鈥檚 lien against the property in the event of non-payment.

The purpose of an NOI is two-fold: First, it protects the subcontractor鈥檚 or supplier's rights to establish a legal claim against the property, allowing them to file a lien鈥攐r pursue legal action鈥攊f the outstanding payment is not made within a specific time frame. Second, it motivates the responsible party (i.e., property owner, developer, or GC) to settle the outstanding payment(s). This is because once a mechanic鈥檚 lien is filed, the property owner can鈥檛 sell or refinance the property until the debt is settled.

Currently, NOIs are only legally required in nine states:

  • Arkansas (10 days before filing lien)
  • Colorado (10 days before filing lien)
  • Connecticut (Within 90 day lien period)
  • Louisiana (material suppliers on residential projects 10 days before filing lien)
  • Missouri (10 days before filing lien)
  • North Dakota (15 days before filing lien)
  • Pennsylvania (30 days before filing lien)
  • Wisconsin (30 days before filing lien)
  • Wyoming (10 days before filing lien)

However, regardless of state requirements, sending NOIs can be a beneficial and inexpensive step that increases subcontractors鈥� chances of getting paid (ideally without actually having to file a lien). Note that subcontractors must first submit a pre-lien (or preliminary) notice before submitting an NOI. Making both of these a standard part of accounting processes for past-due payments can improve A/R collection processes鈥攁nd get payments in the door faster.

Along this vein, empowers subcontractors by providing visibility into outstanding payments across all projects, alerting them when it's time to pursue overdue balances鈥攐r issue an NOI for the most persistent cases.

To experience how Siteline can help your subcontracting business proactively manage payment processes, leverage NOIs when necessary, and accelerate cash flow, book a personalized demo today.

Breaking Ground

What is Breaking Ground?

Breaking Ground, in the context of the construction industry, refers to the initial stage of a new construction project. This process often commences with a ceremonial event, typically involving the initial digging into the ground, symbolizing the beginning of the construction project. It is the first step towards site preparation which involves various tasks including soil testing, land clearing, excavation, and leveling among others. Breaking ground signifies the transition from the planning and designing phase into the physical building phase of a project. The event is usually marked with utmost importance as it indicates the project's commencement and is often attended by the project stakeholders, from contracting company representatives to local government officials. This signifies the beginning of the transformation of a blueprint into a tangible structure.

Transmittal

What is a Transmittal?

A Transmittal, in the construction industry, is an important communication tool used for conveying information related to the project. It serves as a formal method of passing on documents, drawings, or other relevant materials from one party to another. This tangible exchange of information ensures accountability, as each transmittal contains critical details such as the date of issue, sender and receiver's information, description of content, and necessary actions. It鈥檚 crucial for record-keeping and tracking the project's progress as it highlights if and when information was shared and acknowledged. Void of this, miscommunication and disputes may arise impacting project outcomes.

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