In many instances, a mechanics lien is the best tool for guarding against non-payment and related issues with customers. Many construction contracting companies see a lien as something to file when the customer doesn’t pay for services rendered, and after filing the matter will take care of itself. A property owner will be unable to transfer ownership interests in the property until the lien is satisfied.
While this is true in a general sense, it is important for contractors and construction companies to keep in mind a few important legal nuances to protect their interests. As an experienced Missouri and Kansas firm handling mechanic liens and bond issues, we can provide some important guidance.
One important piece of advice is to make sure you file for your lien or lien foreclosure right away. Although this might seem obvious, it is common for those with a potential lien to wait too long with these matters.
This is especially true of smaller contracting and construction companies. Lacking the large staff and organizational structure for this type of task, these companies are often doing everything they can just to keep up with the work and build their network, so something like filing a lien can sometimes fall through the cracks.
Due to regulations and statutes of limitations, filing or petitioning too late can result in losing the right to obtain a lien.
Another important decision is to obtain legal counsel. Filing for a lien or foreclosure is only one legal consideration in mechanics liens, but there are many potential pitfalls and challenges in this regard, and the particular legal requirements are different from one state to the next. Rather than expending your own internal resources on these legal matters and risking costly error, work with a legal team that has experience handling mechanics liens, surety bonds and related issues.