Monday, April 30, 2012

Credit Manager Solutions: Part 3 of the Series: Deciding to File a Mechanics Lien

Deciding to file a mechanics lien is a often a difficult decision. It should not be.  Many companies do not want to upset their customers by filing a mechanics lien, but a mechanics lien is the only way that the law permits you to securitize the value of the labor and materials you provided to a project. Rather than upsetting a customer, companies will simply allow the mechanics lien deadline to pass, thereby waiving a valuable legal right.

However, the reality is that a mechanics lien can have an effect that results not only in your company getting paid more quickly, but also as a company that will tolerate only so much when payments are not made for work or materials provided to a project.


Here are some suggestions to help you decide to go ahead with deciding to file a mechanics lien.  Each "yes" answer is worth one point. If you reach 2 or more points, then it may be time to decide to file that mechanics lien.

*Have payments on the project been consistently late?
*Has the amount owed to you exceeded your internal limit on receivables?
*Is the deadline for filing a lien approaching?
*Have you completed your work or delivered your materials more than 30 days ago?
*Have you heard of other companies filing liens on the Project?

If you answered yes to more than one of these questions, then you may want to file a mechanics lien claim.  If you feel nervous about actually filing a construction lien before giving any notice, you can always provide the owner and anyone you have a contract with what is called a "prelien notice" or "notice to owner."  It's a warning shot that lets everyone know that you're about to file a construction lien before you actually pull the trigger.

The nationwide mechanics lien filing tools provided by LienItNow.com complete the job of collecting unpaid project money. File a lien on the property with ease through our online system. We can help with all the different documents you need for a property lien. Use all the tools at your disposal, use LienItNow.com.

No comments:

Post a Comment