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Filing a Mechanic’s Lien

As a contractor, you have a general dedication to commit to your customers, but what about their commitment that is made to pay you? Unfortunately, you’re going to have to deal with clients once in a while that doesn’t pay you. There is however a fortunate tool for contractors, in the event that a client doesn’t want to pay that, as long as it is done correctly, can ensure that you get your payment the way it was meant to be. There are a lot of legalities and rules along the way, one of them being time sensitivity. In this guide, we’re going to talk about filing a mechanic’s lien.

Give the Proper Notice

One of the most important things to remember is that you have to notify your customers or the property owner in the right frame of time before you start that you’re going to file a mechanic’s lien. This is called the preliminary notice. Almost every state in the continental U.S. requires this, so you need to make sure that you file this first. What this does is reserve your right to file a mechanic’s lien when you need to.

Sometimes You Don’t Have the Right to File One

Generally, if you’re a subcontractor, general contractor, or even a material supplier, you can actually file a mechanic’s lien in order to make sure you get paid. Many states however have special rules regarding public projects in which general contractors are unable to file a mechanic’s lien even though material handlers, suppliers, and subcontractors can.

At the same time, if you file your mechanic’s lien or even your preliminary notice at the wrong time (either too early, or too late), then you’re not going to qualify and have the right to file a mechanic’s lien, or guarantee your payment if it escalates to court.

Drafting Your Lien Yourself or Have Someone Else Prepare It?

When it comes to drafting your mechanic’s lien, you have to have your draft made that allows you to have the many details. It takes very meticulous precision to make sure that every detail is in the mechanic’s lien initial draft. At the same time, you have to make sure that you have all of the pertinent information and you can’t just print out any form you find on the internet like you can with things like rental lease agreements, etc.

The big question is whether you are able to actually do this while you’re having to deal with the busy life of your job. Fortunately for you, there are many companies that can provide and offer help with numerous aspects of a mechanic’s lien, all the way from financial advice, and how to do the job, as well as actually filing the lien for you.

Conclusion

At BICA National Construction Notices, you can actually have the help of a professional company that can assist you in your needs to file a legitimate mechanic’s lien. They’ve served more than 2 million notices and secured hundreds of billions worth of actual money which was paid to their customers (the contractors) so that the contractors could worry about what matters most – their company and their work.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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