When a customer stops paying, most contractors try calls, texts and a few angry emails before giving up or writing it off. Collections is the step in between: a third party that knows construction payment works the account until it pays.
Quick answer: You send the account, we review it and send a formal demand, then we follow up and negotiate payment. Fees are a contingency of 10% to 33% of what's collected. If nothing is collected, you owe nothing.
When to use collections instead of a lien
- Your lien deadline already passed.
- You filed a lien and still haven't been paid.
- There's nothing to lien: a public project, work for a tenant, or a debtor whose property you can't reach.
- You want to avoid clouding the owner's title.
If you're still inside your lien window, file the lien first. It's usually the stronger move, and collections can run alongside it.
The process
- Send the account. Invoices, contract or work order, messages about payment, and the debtor's contact info.
- Review. We confirm the amount, who's responsible, and whether lien or bond rights are still open.
- Demand letter. A formal written demand stating the amount, the job and a deadline to pay.
- Follow-up. Calls, emails and second notices to the debtor and anyone else in the payment chain.
- Negotiation. Lump sum or a written payment plan, approved by you.
- Payment. Funds go to you, less the fee. If the debtor won't pay, we talk through next steps, including an attorney.
Typical timeline
Many accounts resolve within a few weeks of the demand letter. Others take one to three months, especially when a GC is waiting on an owner. The older an account is when it comes in, the harder it gets, so don't sit on it.
What it costs
Construction collections are usually handled on contingency. Ours runs 10% to 33% of the amount collected, depending on the size and age of the account. No collection, no charge. You'll see the fee in writing before we start.
What collections isn't
A collection agency isn't a law firm. We don't give legal advice or file lawsuits. If an account needs to go to court, we'll tell you so you can bring in an attorney.
Frequently asked questions
How much does a construction collection agency charge?
Most work on contingency. Ours is 10% to 33% of what's collected, and nothing if we don't collect.
How long does construction collections take?
Many accounts pay within a few weeks of the demand letter. Others take one to three months.
Should I file a lien or send the account to collections?
If you're still inside your lien deadline, file the lien first. Collections works after the deadline passes or when a lien hasn't produced payment.
This article is general information, not legal advice. LevelSet Collections is not a law firm. If your situation needs legal advice or a lawsuit, talk to an attorney licensed in your state.
Owed money on a job?
Liens from $199. Collections on contingency, no collection, no charge.
