Starting a construction project inevitably comes with a substantial risk regarding the payment and whether you will be paid on time. This is why constructors need to be mindful of ways that can help them get the justified amount without any hassle. Mechanics lien process is one of the most talked about when it comes to securing payments as it paves a way to bringing both the parties to a settlement whenever a conflict arises. However, there is a lot about Mechanics lien that you need to know before you begin with any project in this industry.
- Attaches to the property, not the owner
Filing a mechanics lien is a viable way of ensuring payments as it incorporates the property that has been involved in the improvement project and not the person owning the site. This way the claimant can reach a settlement as the improved property tends to become the grounds for security pertaining to the amount to be paid. Details of the site need to be considered and included whenever mechanics lien is filed so that exact information can be ensured throughout the process.
- Lays down payment deadline
Having secure deadline seems like a luxury that construction industry seldom provides and you are left with little to no security about when you’re going to get the sum. This can be handled by filing mechanics lien as it puts forward a robust deadline regarding the pending payment of the project. Therefore, it provides you with a reliable duration that isn’t supposed to be stretched so that you can successfully get credited for the assessed sum.
- Stays intact through bankruptcy
As mechanics lien remains attached to the property itself, it isn’t possible to get rid of it even when the other party decides to declare the condition of bankruptcy. Unlike other debts and personal loans, mechanics lien tends to stay intact regardless of such instances, hence elevating the chances of the suitable person to get paid. You can be ensured regarding getting the justified payment without having to worry whether the other party files for bankruptcy thinking to get rid of the generated invoice.
- Becomes tough to challenge
Yet another advantage of filing a mechanics lien is that the other party can’t simply get away with your money as this process is backed up with a number of laws that aim towards safeguarding your payment. The issue needs to be addressed by the defendant if you decide to file a mechanics lien regarding the amount that the person owes you. This way, mechanics lien turns out to be a robust framework that helps to get the sum without much delay.
- Creates the grounds for speeding up payment
While filing mechanics lien can help you get the amount for a construction project, it might often turn out to be a fairly complicated process which both the parties don’t want to get into. Nonetheless, it lays down viable grounds for the rights of construction individuals in a way that the paying party becomes mindful of the possibility of facing lien in case they obstruct the payment.
While it’s evident that construction projects should be carried out without having to lead to the condition of filing a lien, this process comes as a relief for those who aren’t secure about their payment status. Filing a mechanics lien, thus provides a credible means of being paid without having to file an expensive, time-consuming and exhausting lawsuit. Moreover, a mechanics lien can clearly provide you with the peace of mind whenever the other party attempts to run away with your money.