Benefits of a mechanics lien to contractors

On Behalf of | Mar 10, 2020 | Firm News |

With the hint of spring in the air, many people are anxious to get starting on their next home improvement or building project. Contractors and subcontractors know that the spring and summer seasons tend to be among the busiest for them as the weather facilitates more work. However, the increase in workload may also open the door to more problems collecting payments from customers. When needed, a mechanics lien may help to receive payment for services rendered. 

As explained by Construction Executive, a mechanics lien acts in a manner similar to any other lien by preventing sales, mortgage refinances or deed transfers from taking place until the outstanding debt has been paid. These liens do not automatically happen, and they require a contractor to pay special attention to the calendar as there are numerous deadlines that must be met to get, keep and enforce a mechanics lien. 

Construction Dive notes that mechanics liens are part of a property’s public record and may even be used to force the sale of a property if necessary. These liens are attached to the entire property, including the land and any structures on it. 

Some of the steps and deadlines in the process of obtaining and initiating a mechanics lien include notifications to the homeowner of intent to file a mechanics lien and timelines for when collection efforts must be initiated. Some contractors may weigh their options before collecting via a mechanics lien as they fear repercussions from a poor review or word of mouth reputation, but they must also feel confident in their right to get paid for the work they have done. 

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