Construction work is often a lengthy process. Individuals and businesses may commit days or even months of work to a single project. Individual property owners and businesses often do not pay the full amount due up front for construction work at a property.
Instead, they pay a deposit initially and then make payments for the remainder of the balance due. Such arrangements provide property owners with leverage in case the work does not conform to building code standards or the requirements integrated into the contract.
A mechanic’s lien turns the property into collateral for the unpaid invoices and can potentially result in foreclosure. Who has the right to request a lien after the completion of a construction project?
Unpaid professionals may have grounds to request a lien
Subcontracting is common in the construction world. Companies hire outside professionals to provide services beyond basic organizational functions. Doing so allows them to control costs more effectively than retaining full-time services from workers whose skills may only be occasionally necessary.
The company hired by the property owner has the right to pursue a lien if they do not receive payment in full. The law also protects any subcontractors and outside professionals hired by the main party overseeing the project.
Any contracted party, even those who do not have a direct working relationship with the property owner, can theoretically request a mechanic’s lien if they do not receive payment in full for services provided for the project. Disputes with subcontractors could potentially lead to lien requests that could damage a company’s relationship with clients.
Learning more about common sources of construction litigation can be beneficial for standalone professionals and business leaders. Seeking personalized legal guidance is a great way to get started.
