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Mechanic’s liens can help construction companies get paid

While a job well done is its own reward in a sense, construction companies naturally expect to get paid for their work. Unfortunately, some developers and other customers do not pay when the bill comes, even when the job was done according to specifications, without any defects or delays.

Sometimes, the client will promise to pay, but delay actually making the payment. Other times, they may refuse to pay, or pay less than the full fee. Frustrated construction company owners, who face bills and payroll obligations of their own, may not know what to do next to get the money they are owed.

This is where a business law attorney can come in, especially one with experience working with the construction industry. There are legal steps that businesses can take to secure payment, including litigation if necessary.

One possible option is acquiring a mechanic’s lien on the property. Despite the name, this type of lien is not limited to mechanics. Anyone who spent material or labor working on someone else’s property, but was not paid for their services, has the right to obtain a mechanic’s lien. Certainly, this can apply to a builder or remodeler who has not been paid by the property owner.

A typical mechanic’s lien will give the builder possession of the property until the owner pays up. This motivates many reluctant clients to make good on their financial obligations.

Since every business dispute is different, another strategy may be best for any given situation involving a collection dispute. A business law attorney can discuss particular cases in greater detail.