Construction Liens: What You Need to Know to Protect Your Business
If you’re in the construction business, you know how important it is to get paid for the work you do. However, there are times when clients fail to pay for your services, which can be detrimental to your business. This is where construction liens come into play. A construction lien, also known as a mechanic’s lien, is a legal claim that a contractor, subcontractor, or supplier can file against a property owner who fails to pay for construction services. The lien gives the claimant the right to seize the property and sell it to satisfy the debt. If you’re not familiar with construction liens, here’s what you need to know to protect your business: 1. File your lien on time When dealing with construction liens, it is crucial to file them within a specific timeframe. In most states, you have a limited amount of time to file your lien, usually between 30 to 90 days after the last day you provided services or materials to the project. Make sure you know ...