If you are in the construction industry, you are in the business of getting paid for your services. It’s more time consuming than it should be but contractors have a tool in their arsenal that can greatly enhance their chances of getting paid when payment is in question. The mechanics lien, when executed correctly, is a tremendous motivator for owners and development companies that don’t want to face a lawsuit. It can also serve as a backup when an owner has refused to pay. However, it’s a legal process, one that must be handled as required by state law in order for you to receive payment. One misstep and your lien rights could be waived.
It’s helpful to work with a West Palm construction lawyer when filing a mechanics lien, but if you choose to handle the lien on your own, it’s critical to avoid these mistakes:
Mechanics liens often have specific information requirements. If the lien is missing one piece of information, even if you think it’s inconsequential, it can be rendered invalid. As you can imagine, many of the most common details missed center around project work. Not listing project start and end dates can significantly hurt your chances of getting paid. Contractors have had their lien rights taken away because they didn’t provide an itemized list of materials and labor. Additionally, certain states require specific information about the property to be listed on the lien. Without the correct information, the lien will be invalid.
Along with having all the necessary information, the information must be accurate. Typos, where information is placed on the document, and erroneous information are all grounds for having your lien invalidated. Additionally, if you list the property information incorrectly, your mechanics lien may be invalid. Accuracy in this situation is paramount.
Not Sending a Preliminary Notice
A preliminary notice is required for filing a mechanics lien in Florida. However, in states where it’s not required, people often and mistakenly omit this part of the process. This is a mistake because the preliminary notice gets the attention of project owners and can be instrumental in the payment process.
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.