For suppliers, subcontractors, and general contractors—as well as all others who supply products or services to a construction project—understanding your lien rights is more important than ever before.
The economic downturn has had many contractors, property owners, and developers operating on razor-thin margins. As a result, many are finding themselves running out of money before the end of the project. Others are attempting to find fault with the work of the subcontractor or supplier in order to justify not paying the invoice for services. Whatever the reason for failing to pay, the subcontractor or supplier are left bearing the burden of not getting paid.
All too often the subcontractor or materials supplier is promised payment and, in reliance on the promises to pay, they are lulled in to a state of expectation that keeps them from filing a mechanic’s lien, submitting a stop notice claim, or making a bond claim. At that point in time, they may still have their rights of collection intact, but the remedies and the sources of revenue have been limited.
If you find yourself at the end of your services or supplies for a project and you have not been paid, determine your lien rights early. Seek counsel from an attorney who knows and understands mechanic’s lien rights and construction litigation issues. David H. Ricks & Associates may be an excellent source of information, as well as reasonable and effective representation for construction-related matters.