Ep 59. Our Very First LLC In Construction

In this episode, David shares a lesson learned in the construction industry about the importance of vetting subcontractors and ensuring they pay their vendors. He tells the story of a subcontractor who didn't pay the concrete company, resulting in a lien on the property. David had to pay the debt to remove the lien, costing his company $3,000. He emphasizes the need to cross-check subcontractors' payment history with suppliers and to have them sign lien waivers. David also discusses the exposure and risks in the construction industry and advises listeners to slow down, analyze their exposures, and seek professional help to protect themselves.

keywords
construction industry, subcontractors, vetting, payment, lien, exposure, risks, analysis, professional help

takeaways
Vet subcontractors and ensure they pay their vendors before paying them in full.
Cross-check subcontractors' payment history with suppliers and have them sign lien waivers.
Analyze and understand the exposures and risks in the construction industry.
Seek professional help to protect yourself and outsource areas where you are deficient.
titles
Cross-Checking Payment History and Using Lien Waivers
Understanding the Exposures and Risks in Construction
Sound Bites
"Make sure that you are cross-checking that all your subcontractors, no matter how much you feel they're honest, they're good business people, they do the right thing, double check that they are paying their vendors."
"Don't just pay the subcontractor the full price without checking to make sure that the supplier got paid as well."
"We are so exposed because there's so many things, lien waivers, like the accounting, the insurance, the bidding, the billing."

Chapters
00:00
Introduction and Apology for Not Having Tiger Woods on the Show
03:24
Lesson Learned: Vetting Subcontractors and Cross-Checking Payment History
09:22
The Importance of Lien Waivers and Checking Supplier Payments
18:26
Understanding the Exposures and Risks in the Construction Industry
23:47