Contractors who have been in the business long enough know that getting paid isn’t always a guarantee. Maybe you’ve been in a situation where the job was completed, but payment was never received. In this scenario, it might start looking like you will never be paid. Luckily, there is legal recourse for contractors to get paid the money they deserve. This legal recourse is filing a mechanics lien for payment on the construction work done to the property.

In this post, we will provide an overview of how contractors can get the money they are owed through filing a lien on a project for which they didn’t receive payment.

Filing a mechanics lien on a project you haven’t received payment for is probably one of the most effective ways to collect the money you deserve. In this next section, we will provide a brief overview of how a mechanics lien can get you paid quickly.

Filing a mechanics' lien can encumber the property in that if the owner tries to sell the property, the mechanic's lien will show up on the property’s title before closing. Having a mechanics lien show up on a title search will require the property owner to pay the money they owe to you, the contractor, to proceed with selling the house. With that in mind, filing a lien can be a great motivation for the property owner to pay you the money they owe.

Most construction projects are financed by a bank or third-party lender. This means that they have a vested interest in getting their money back. When you file a mechanics lien, you get the attention of the construction lender. They will do everything they can to ensure that payment is made so as not to sacrifice getting their money back for the loan they gave out.

As we mentioned briefly in the first section, a mechanics lien on the property makes it so that the owner has to pay back the lien before the property is sold. Property owners dislike mechanic liens for this reason. They also make it, so the property owner is at risk of paying for the same construction work twice. To avoid this, they often pay what is owed right away, ensuring that you get the money you deserve as the contractor.

Besides all the factors that are explained in the previous sections, filing a lien also signals that a contract has been breached. Being in breach of a contract motivates the property owner to pay what they owe to avoid further legal trouble. If you’re a contractor looking to get paid the money you’re owed, consider contacting Nationwide Notice. They are the industry leader in construction payment and lien notice services. Their team of experts can help you collect any missed or late payments that are owed to you. Getting paid in construction can sometimes be a challenge, and attorneys are expensive. By contacting the professionals at Nationwide Notice, you can get the money you’re owed quickly and efficiently without having to spend thousands in lawyer fees. We also specialize in general contractor payments, lien releases, construction payment, and change order forms. To learn more, check out our website here.