What is Equity?

Cloud-Based Software, in the context of the construction industry, refers to software applications that are hosted on remote servers and accessible via the internet. Instead of being installed directly on your local hardware or computer, the software applications and data are stored and managed on servers in a remote data center. This means you can access them from any device, at any time, provided you have an internet connection. The use of cloud-based software in construction allows real-time sharing and collaboration on projects, efficient storage of large design files, automated scheduling, accurate cost estimation and improved resource management, thus enhancing efficiency and productivity.

A zero-balance account (ZBA) is a financial tool commonly used in construction accounting where the account balance is maintained at or near zero. Funds are transferred to the ZBA as needed to cover expenses or payments, typically from a parent account. Once a transaction has been made from the ZBA, that amount spent is automatically transferred from the parent account, so the ZBA balance returns to zero.

In the complex world of construction projects—where multiple subcontractors are involved—ZBAs allow the general contractor (GC) to closely monitor and manage cash flow for each subcontractor on the project. This system prevents excess funds from sitting idle in numerous accounts—and potentially forgotten as the project progresses. It also provides a clear audit trail for each subcontractor’s expenses, making it easier to track costs against budgets to identify any discrepancies or unusual spending patterns. Additionally, ZBAs can help reduce the risk of fraud or unauthorized spending, as funds are only transferred on an as-needed basis.

ZBAs provide a level of control and visibility that is crucial for maintaining liquidity and profitability—much like Siteline. Siteline allows subcontractors to easily track their inflows and outflows, providing a clear financial picture of each project and the company overall. Interested in learning more? Schedule your personalized Siteline demo here.

A Notice of Commencement (NOI) is a legal document filed by general contractors (GCs) to formally declare the start of a construction project. In addition to establishing an official record of when construction began, it also provides essential information about the project—property details, project scope, contact information for key project stakeholders, etc. In some states, it may be referred to as a Notice of Project Commencement, an Affidavit of Commencement, or a Notice of Contract. 

For subcontractors, NOCs are important because they determine when you need to file paperwork to protect your lien (and thereby, payment) rights. Once the owner or GC files an NOC, it often changes the deadlines for when you must submit preliminary notices and mechanics’ liens. These documents contain vital project information, including:

• legal property descriptions,
• owner details,
• GC information, and
• surety data.

In most states where NOCs are required, they must be posted at the job site and recorded with the county clerk’s office. Subcontractors should be aware that failing to respond properly to an NOC could result in losing their right ot file a lien if a payment issue arises.

Staying informed about documentation like NOCs is crucial for securing payment on construction projects. For more detailed information on how to protect your lien when working on projects with an NOC, visit this blog post for the complete guide and best practices. Subscribe to Siteline’s newsletter for regular updates on getting paid on time and protecting your bottom line.