When subcontractors agree to work on a project, they expect to receive payment in a timely manner. If they do not receive payment, people need to know which options are open to them.
One step subcontractors can take is to file a construction lien. According to FindLaw, this lien is a claim against the property. Many subcontractors may be reluctant to take this step because they do not want to damage the relationship they have with the general contractor. However, there are many reasons why a lien can be a good option.
Creation of a deadline
Without a lien, it may take a few months to receive payment from a general contractor. According to ConstructionJunkie.com, a construction lien sets a deadline for the payment. The situation can become more serious if the company still does not provide payment, so the lien encourages people to resolve the situation quickly.
Last step of a long process
A construction lien is usually not the first step subcontractors take. Most of the time, people send a preliminary notice requesting payment. They may also send several emails or make phone calls about the matter. If the lack of payment is an oversight, then the situation may not need to progress any farther, as these written notices should be enough to resolve the situation.
If the general contractor still does not send payment, then people can send a notice of intent to file a lien. Many general contractors may provide payment once they see the notice of intent. If they do not, however, then subcontractors can file a construction lien because they have already tried every other option to receive payment.
