Any construction attorney in Brentwood, TN, will give a contractor the same answer when asked about the importance of maintaining their lien rights. Put simply, it’s extremely important. You don’t want to waste your time, resources, and money working your way towards nonpayment, and the mechanic’s lien is designed to prevent that from happening. However, if you aren’t careful, you could lose your lien rights.
In this article, we will discuss three ways that contractors can lose their lien rights before even filing a claim of lien in Tennessee. Remember, for help with lien law, consult a construction lawyer in Brentwood, TN.
1. Focusing on the Wrong Dates
It’s vital that contractors have their attorneys draft up a timely Notice of Nonpayment within 90 days of the last provision of materials or labor and not the date when these provisions were billed. You could lose your lien rights by failing to send this notice in the appropriate timeframe.
2. Failing to Send the Notice of Nonpayment for Extra Work
Similar to the last point, you must file a timely Notice of Nonpayment for any unapproved change orders or extra work, too. Once again, the lien claimant must not initiate the 90-day period from the time the extra work was billed.
3. Lacking Attention to Detail When Examining Lien Waivers and Releases
Claimants may lose their lien rights if they sign and submit a “standard” partial lien waiver or application before taking the correct actions to preserve their lien rights. For example, if the claimant releases retainage before it has been paid or releases extraneous change orders during the initial release, they could waive their rights.
If you aren’t careful, you could put your lien rights in jeopardy. Before you know it, that owner who refused to pay you could be riding off into the sunset with the compensation you’re due. Don’t let this happen to you. Consult a construction law attorney Brentwood, TN, to see how a seasoned legal representative with a thorough knowledge of the construction industry can help you file perfect liens every time a pay-related dispute with an owner arises.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.