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The revolu*onary method for simple construc*on payment that makes everyone happy.
36

lienzero v1

Jan 28, 2018

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Page 1: lienzero v1

The revolu*onary method for simple construc*on payment that makes everyone happy.

Page 2: lienzero v1

Hi, I’m @sco,wolfejr… and I’m @natebudde.

We know a lot about construc*on payment problems.

Page 3: lienzero v1

We know a lot about construc*on payment problems.

Founded

Prac*ced construc*on law.

Created Construc*on Payment Blog.

(Relied on by 100,000+ contractors and suppliers to make payment docs and payments fast & easy)

(Between us, we’re licensed in mul<ple states across the country)

(Read by more than 1,000,000 industry players every year)

Page 4: lienzero v1

(not for you, of course, for those other contractors and suppliers)

So, let’s start with why construc*on payment is such a mess.

Page 5: lienzero v1

Who needs to worry about this stuff?

Page 6: lienzero v1

“We always get paid.”(I’m all set)

“We pay our subs quickly so we never run into problems”

(I’m all set)

Page 7: lienzero v1

Okay.

That doesn’t seem to be the case when you look at the industry as a whole,

but maybe you’re an excep*on.

(you’re probably not)

Page 8: lienzero v1

“We only do business with people we trust”

“We’re protected by our contracts.”

(We’ll be fine)

(We’ll be fine)

Page 9: lienzero v1

Sure. I suppose that works some*mes.

Maybe you’ll never run into any issues, and payments will always be fast, easy, and fair for you.

(again, of course, probably not)

Page 10: lienzero v1

“We don’t have any problems right now.”

Page 11: lienzero v1

We get it.

But, wai*ng un*l a problem — like a lien —

pops up is just too late.

Page 12: lienzero v1

Wait, a lien?

That makes me angry!

What low-down,

dirty, no-good,

yella, scumbag

would file a lien on our job?

Page 13: lienzero v1

You’re not alone.

Everyone hates liens.

We hate liens.

Page 14: lienzero v1

No one walks onto a job and thinks, “I can’t wait to lien this job.”

100%of people hate liens.

(true sta<s<c)

Page 15: lienzero v1

Here’s a scale of things everyone loves and hates.

HANDSHAKE DEALS

GOODPARTNERS

LONG, STRONG

CONTRACTSUSING

LEVERAGE

LIENS SLOW PAY

& DISPUTES

this is great! well, I guess we can live with this. Pure hatred.

Page 16: lienzero v1

These days…

this is hard to find.

HANDSHAKE DEALS

GOODPARTNERS

LONG, STRONG

CONTRACTSUSING

LEVERAGE

this is great! well, I guess we can live with this. Pure hatred.

LIENS SLOW PAY

& DISPUTES

Page 17: lienzero v1

With so many regula*ons and things that can

go wrong…

everyone winds up doing this.

HANDSHAKE DEALS

GOODPARTNERS

LONG, STRONG

CONTRACTSUSING

LEVERAGE

this is great! well, I guess we can live with this. Pure hatred.

LIENS SLOW PAY

& DISPUTES

(Psst: Your aOorneys really like this solu<on)

Page 18: lienzero v1

And so too oRen…

We wind up here.

HANDSHAKE DEALS

GOODPARTNERS

LONG, STRONG

CONTRACTSUSING

LEVERAGE

this is great! well, I guess we can live with this. Pure hatred.

LIENS SLOW PAY

& DISPUTES

Page 19: lienzero v1

• Hope

• Suffocate others

• “Stay ahead”

• Write Offs

• Put their head in sand

• Turn down business

• Try to ‘transfer risk’

• Deal with it

• Lawyers!(These are all preZy bad strategies)

Here’s a list of things companies do to protect themselves against bad outcomes like liens.

Page 20: lienzero v1

All of this “protec<on” is part of the problem. :(

Page 21: lienzero v1

• Lien waivers

• Strict pay app requirements

• Prompt pay laws

• Retainage laws

• Misappropria*on of funds laws

• Prelim No*ces

• Liens

• Bonds

It’s created a bunch of noise for you to deal with…

Page 22: lienzero v1

…Not to men*on that everyone has their own way.

no, thisuse this

use this this is the best

use this

but, my lawyer says…

Page 23: lienzero v1

So how do folks manage all of this noise today?

Page 24: lienzero v1

Protect. Protect. Leverage. Protect. Protect.

LAWYER-UP USE COLLECTION

SERVICES

STRICTLYPREQUALIFYEVERYONE

“It’s just so hard to find good subs these days”

“Stay ahead of that one”

“Let’s work this one on a joint check.”

pay-when-paid

pay-if-paid

risk-transfer provisions.

must give noAce of claims within 7 days…

“do I have to sign this, or can I strike out some of this stuff?”

“Secure your payment”

“Take advantage of your lien rights.”

“Make sure you check the credit of that sub.”

(Psst. This stuff hasn’t worked very well)

Page 25: lienzero v1

Since it’s all so complicated, it’s no surprise

that things go wrong.

And what happens when things go wrong?

Page 26: lienzero v1

LIENS!(hey, we just got liened. I don’t even know who this person is. Were they even on this job? Argh!)

(hey, even though its a last resort we have to file a lien on this job. Otherwise, we won’t get paid and we’ll lose our rights. Argh!)

Page 27: lienzero v1

Liens are nuclear.They create a heart aOack on the project. Money stops. Schedules get delayed.Contracts get breached. Rela*onships spoil.

And it has a ripple effect across so many different par*es and jobs.

don’t. go. nuclear.

Page 28: lienzero v1

AND REMEMBER…

Page 29: lienzero v1

No one walks onto a job and thinks, “I can’t wait to lien this job.”

100%of people hate liens.

(true sta<s<c)

Page 30: lienzero v1

Okay, okay, okay.

I don’t want anything nuclear to happen on our job. I want the

process to be easy.

What’s a beZer way?

Page 31: lienzero v1

(what in the world is lienzero?)

Page 32: lienzero v1

Takes the headaches with construc*on payment and gets them out of your way.

Instead of protecWon. It focuses on collaboraWon.

Instead of leverage. It focuses on good outcomes.

Page 33: lienzero v1

And it helps you build, maintain, and prosper with:

Good rela*onships Repeat business Compe**ve advantage

Wow, that sounds great. Can I hear more?

Yes, we’re glad you asked.

Page 34: lienzero v1

It’s actually quite simple.

Page 35: lienzero v1

At the start, everyone wants things to go well.

THE OLD WAY

Fearful of bad outcomes, they set up protec*ons.

It’s a nightmare to keep up and follow-up with all

the protec*ons and paperwork, and track everyone on the job.

The result is bad outcomes.Liens | Slow pay | Back charge | Disputes

Page 36: lienzero v1

At the start, everyone wants things to go well.

HERE’S THE NEW WAY

See everyone.

Easy paperwork.

Take away the bombs.

Good Outcomes!Fast & Easy Payments.