dealing with construction liens

4 Tips for Protecting Your Construction Lien

Construction liens, sometimes called mechanics liens, are important legal protections that ensure a construction company is paid for the work it performs. Dealing with construction liens can be complex, with variations in each state. In most cases, they should be handled by your company’s attorney. Here are four tips for protecting your constriction lien and ensuring that your financial interests in a construction project are protected.

dealing with construction liens1. Verify Property Ownership

Make sure to verify the owners of the property where the construction project is to take place. A good place to start is in the county’s public records department. Look for a deed that identifies the owners and clearly describes the property where you expect to be working. Double-check the contract you executed for the construction work to make sure the person you contracted with is truly the owner of the property.

2. File Appropriate Documents

File all the necessary documents for the lien, including all preliminary documents and other material required by state and local authorities. Skipping this step or missing one of these critical documents can deprive you of the protections you’re seeking and could have legal repercussions later in the process.

3. Maintain Timely Communication and Responses

When a response document is required, such as lists of suppliers and subcontractors, ensure that the response is delivered within the timeframe specified by the contract, agreement, or regulation. If the owners or other stakeholders have questions or want to contact you, get back with them as quickly as possible, or ensure that your attorney responds in a timely manner.

4. Close out the Project Properly

When construction is completed, take all the necessary actions to close out the project. This can include final agreements, inspections, indicators of satisfactory performance, and related legal documents.

Construction Monitor is a leading source for advice and industry insight to help construction companies succeed with their business. Contact us today for more information on dealing with construction liens and for suggestions on other important business protections.

1 thought on “4 Tips for Protecting Your Construction Lien”

  1. Thanks for these informative information. This problem is with many construction company owner; even after performing and completing the projects, the companies needs to worry about their payment.

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