Running a successful construction-sector job generally requires juggling multiple projects at once. Leaders need to constantly be on the lookout for new clients while managing current projects and collecting the funds due for previous work.
Typically, those hiring construction professionals or firms only pay a partial deposit initially and then pay the remainder of the agreed-upon costs after the completion of the project. In some cases, clients attempt to withhold final payment by claiming that there are issues with the project. In such scenarios, construction professionals and business leaders often need to take immediate action.
A lien helps protect the right to payment
Professionals and businesses that provide either skilled services or materials for construction projects have a right to payment. They can usually request mechanic’s liens in scenarios where clients do not issue payment as promised in the initial contract.
However, the window for securing a lien is relatively small. Time spent negotiating with a client and trying to address their complaints could lead to the expiration of the statute of limitations for mechanic’s liens. The rules are slightly different in New Jersey and New York, but the right to place a lien to protect the right to collect the amount due exists in both jurisdictions.
Reviewing an initial contract and the details of a client’s complaints with a skilled legal team can help construction professionals prove that the work they performed conformed to contractual standards and that they should receive payment in full. A mechanic’s lien can help protect the right to pursue payments when a client tries to fabricate complaints to avoid their contractual financial obligations after the completion of work.
