The Debt Collection Process for the Construction Material Supplier Industry


The Debt Collection Process for the Construction Material Supplier Industry

To succeed in collecting construction debt, firms need to establish best practices, Success stems from following clear and consistent procedures. While every case is unique, there is still a process to follow when collecting construction material supplier debt.

The Construction Debt Collection Process

Debt collection best practices starts with a records review. An experienced staff member looks over related documents. The debt collection firm needs to ensure that the debtors name and contact information are correct. 

Moreover, firms need to assess collectability. Documentation supporting the amount demanded in the claim is crucial. The record review indicates if the case is within the statute of limitations for New Jersey or New York. Understanding the details of the case helps determine how to approach the debtor.


The next phase in the construction debt collection process is demand. A written request for payment goes to the debtor by a combination of means—email, fax, letter. Likewise, make phone contact by in-person call, voicemail, or text message. 

The results in the demand phase vary. The debtor might send a payment, offer a settlement, request for substantiation of the charges, or there could be no reply at all. If there is no payment, look at whether the case warrants legal action.

Payment or Settlement

Payment is the best outcome in the construction debt collection process. Debtors may set up a plan for monthly payments or pay a lump sum. The customer may also want to negotiate a settlement for a lesser amount. Either way, it’s essential to ensure that the debtor pays the agreed to amount.


If a customer disputes the claim, they may request substantiation. Have all the correct documentation from the start helps us to substantiate the claim. Substantiation laws vary from state to state. In New York, A debt collection firm must provide the debtor with written substantiation within 60 days of receiving a request.


Taking legal action is a last resort in the construction debt collection process. If all other avenues proved fruitless, construction materials suppliers might need to litigate to collect bad debt. An experienced debt collection firm can navigate this part of the process with an attorney.

If you need assistance with the construction debt collection process, call The Kaighn Company at 908-319-5155 or email

Alison De Vito