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Getting Paid in Construction: The Basics of a Mechanics Lien

When you supply the labor or materials needed to build or improve a property, you expect to get paid. However, we all know that this doesn't always happen, so you may find it necessary to file a mechanics lien. Below, you will learn more about what this lien is and how it can ensure you are paid.

What Is a Mechanics Lien?

A mechanics lien is a guarantee of payment to construction firms, builders, and contractors. It will ensure that those who worked on the project are paid before anyone else in case of liquidation, as well. Naturally, construction companies want to ensure their protection, so they will require that these liens are in place. Most construction companies will not even begin work without one of these liens.

The lien will stay in force until the project is finished and all those who worked on the construction have been paid. This type of lien will generally have a higher priority than other types of debt, which is good news for your construction company. It means that if there is a repossession, foreclosure, or other issues with the property, you and your team will be the first ones paid.

Mechanics liens are hard to challenge, and they can provide some advantages to help ensure contractors get the payments due to them.

How Does a Mechanics Lien Ensure You Get Paid?

Filing a mechanics lien will let everyone know that you haven't been paid yet. While the property owners should already know this and work to remedy the situation, it is possible to forget. Property owners worry about these liens for a few reasons, and they will want to have those things taken care of sooner rather than later.

If a construction company files one of these liens, it means that the owner is no longer able to sell or transfer the property in most cases. It essentially encumbers the property. This means that it will appear on a title search of the property. This will ensure that the lien will be seen by anyone who is considering buying the property.

In some cases, it is possible to fall back on the property for payment. You can collect money from the property. For example, if there is a lien and you aren't paid, the real estate could be sold at auction to pay you. While this is rare, it can and does happen.

Naturally, owners want to make sure things get taken care of as soon as possible, so they don’t have anything hanging over their property.

If you are at the point of not getting paid for the work you've done, it might be time to file a notice. This will help to ensure that the issue is brought to the attention of the owner, so they can take care of the problem.

How Nationwide Notice, Inc. Can Help with Mechanic Liens

Mechanics liens are a powerful tool that will help to ensure you get the compensation you need for the work you've done. Never proceed without one.

In the event of non-payment, having an option like a mechanic's lien can help. We are a full and self-service preliminary notice and lien service company specializing in assisting construction companies to protect their receivables. If you have a construction company and need help getting your construction payments, that is where Nationwide Notice, Inc. comes in. If you need to get a client to agree to a mechanic's lien, the process can be as simple as reaching out to Nationwide Notice, Inc. and letting us help you get the money you are owed. Call us today or reach out to us on our website for help. You can also learn about what makes us different on this page to get started.