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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.
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Other construction terms
What are Long-term Assets (Noncurrent Assets)?
Long-term assets, also known as noncurrent assets, are significant for the construction industry because they represent valuable resources that companies expect to benefit from over a future period exceeding one year. In the context of the construction sector, long-term assets can be physical properties like buildings, land, heavy machinery, and equipment used for construction work. They also involve intangible assets such as patents, trademarks, or contracts that provide long-term value. These assets play a vital role in the industry as they are not intended for immediate sale but are used over time to generate income. Depreciation or amortization is applied to such assets reflecting their usage and wear and tear over time. The accurate recording and appreciation of these assets can significantly impact the financial analysis and planning within the construction industry.
What is a Subcontractor (SC)?
A subcontractor, also known as a trade contractor, is a specialized construction professional that a general contractor (GC), construction management property, owner, developer, or other entity hires to perform specific work on a construction project. Subcontractors typically specialize in a particular trade or craft, such as electrical work, plumbing, HVAC installation, framing, roofing, glazing, flooring, or drywall installation. They are bound by a contract that outlines the tasks they need to perform as well as deadlines and terms of payment.
Subcontractors are distinguished from GCs in several ways. GCs oversee the entire construction project, managing all aspects from start to finish, including coordinating subcontractors, obtaining permits, and ensuring compliance with building codes and regulations. Subcontractors, on the other hand, focus solely on their specialized area of work and are responsible for completing their specific tasks according to the project's plans and specifications.
Subcontractors face extensive payment cycles, as they cover all labor and material costs upfront for a project yet receive payment last. Progress billing further complicates the matter, mandating that GCs only reimburse subcontractors based on project completion percentage. This system requires subcontractors to invoice GCs every month for the work completed, which exposes them to various factors that can delay progress billing further. These include:
- using the wrong pay application form,
- missing documentation,
- lien waiver oversights,
- submitting pay apps through the wrong GC portal,
- general project delays and disputes, or
- the GC’s own cash flow issues.
As a result, most subcontractors wait about 90 days to get paid for the work they’ve already done, which can strain their cash flow and hamper their ability to take on new projects or pay their employees and suppliers.
This is where Siteline comes in. Siteline is a construction billing solution built specifically to streamline the subcontractor A/R workflow. With Siteline, trade contractors can easily generate and submit detailed pay apps tailored precisely to each GC's requirements. The platform also:
- tracks all compliance requirements and stores pertinent documents;
- tracks, collects, and submits lien waivers for the sub and their lower tiers;
- ensures approved change orders are incorporated into the schedule of values;
- provides full visibility into billing statuses across projects—including which GCs pay fastest to better anticipate cash flow; and
- creates accurate billing projections to monitor progress and effectively manage backlog.
By eliminating manual spreadsheets and centralizing all billing data, Siteline helps trade contractors accelerate their payment cycle by an average of three weeks. Discover how Siteline can get your subcontracting business paid faster by scheduling a demo today.
What is Certified Payroll?
Certified Payroll is a specific type of payroll process required for any contractor or subcontractor working on federally funded or assisted construction projects under the Davis-Bacon Act. It is a federal compliance requirement to ensure employees are paid prevailing local wage rates and benefits. Certified Payroll records include the worker's name, their classification, hourly rates of wages paid, daily and weekly hours worked, deductions made, and actual wage paid. It provides transparency for regulators, ensuring fair wages for work conducted. This mandatory weekly submission acts as an assertive step in suppressing wage theft in the construction industry.
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