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Are you in the construction industry and struggling with being paid in a timely fashion? Are you at a loss about how to reverse the trend and keep yourself solvent while still accepting new contracts? Perhaps it's time for you to change the way you deal with your receivables. Consider asserting your lien rights and changing your noticing procedures so that you get paid on your terms.

Construction Liens: What They Are

If you are unfamiliar with construction liens, they are claims against a property by a professional like a subcontractor who didn't get paid for the work they did on the property. Construction liens protect the professionals who spend time working on a property from the risk of non-payment by making it difficult to sell or refinance the property by making the title unclear. If payment continues to go unmade, the house can be sold to pay the contractors and subcontractors.

Rules for Construction Liens

State laws for construction liens vary. Sometimes, rules will vary between residential projects and commercial ones. Typically, a contractor or subcontractor can only file a construction lien if a written contract is in place. The contract must specify the work that was to be performed, the materials that were to be used, and the price that was agreed upon for the completion of the job.

Depending upon the state where you did the work, you may have to file notices before filing a lien. Some states require a Notice of Intent to File Lien, while others require a Notice of Right to File Lien. It's important to understand that the two notices differ in when they must be filed.

* Right to File Notice: Must be filed at the beginning of the work. Sometimes, you can file these late, but that changes what the lien covers.
* Intent to File Notice: These are filed after payments have been withheld. There is generally a time limit on how long you have to file these notices.

How to File A Construction Lien

Protecting your rights is a sound business practice. Partner with a company like Nationwide Notice, Inc. to simplify the process for you. The management tools and web platform we offer allows you access to state-specific laws, statutes, and changes while giving you tools to submit notices and activate liens. Exercising your rights to file a construction lien immediately affects the other players who manage the funding and are withholding payment from you.

Wrapping It Up

A construction lien is a tool that helps to protect professionals in the construction industry from the risk of non-payment for work performed. Rules for filing a lien differ depending on the state where you operate. Utilizing lien software gives you more control over the lien filing process to protect your right to receive payment.
For more information about how lien filing software can benefit you, contact Nationwide Notice, Inc. to discuss what we can do to help you protect your receivables. As a full and self-service notice and lien company, our priority is to assist our clients to secure their payments. Nationwide Notice, Inc. can also assist construction companies by assisting with lien laws and related documents, based on the requirements of their state. Get started with us today - we are just a call or click away.

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