Being a contractor is not easy because it takes significant skill and effort to succeed in this line of work. It can also be rewarding if there is steady cash flow from clients who pay the proper amount on time. Unfortunately, that is not always the case. Sometimes, contractors and subcontractors face various issues because of unpaid services. In these scenarios, businesses can take legal action to protect their rights, such as filing construction liens.
This legal proceeding can help a claimant pursue payments for completed work. However, it might only have a bearing if the claim is valid. A construction lien may lose validity for the following reasons:
- The claimant failed to file the action at the correct court
- Too much time has passed from the completion of work provided by the claimant
- The claimant did not follow through with the appropriate notices and procedures before or after filing the claim
- The claimant could not meet the relevant filing deadlines
As the claimant, you should consider essential details that may impact your claim’s validity. Meeting deadlines and requirements can make a huge difference, especially if the other party challenges your claim.
What can be at risk?
If the court deems your construction lien invalid, you might have to discharge the unpaid payments. Doing so can gravely affect your business if it leads to considerable losses. Fortunately, there are ways to secure your construction lien’s validity in court, such as making sufficient preparations before initiating the claims process.
Preparing for any scenario
As a contractor, you can protect your business and rights by taking specific measures before filing your claim, such as seeking legal counsel. Valuable insight into your situation can help you pinpoint factors that can risk your claim’s validity. Legal guidance can also help you navigate and address issues that may arise.
