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Construction boom leaves contractors with questions about getting payment

On Behalf of | Dec 5, 2022 | Aggressive Collections, Commercial Debt Collection, Mechanic's Liens

There are some professions where work is hard to quantify. Did a professor spend 40 hours per week working on research for an upcoming publication? Did that writer really write for as long as they claim? Construction is not one of those professions. Construction workers work hard, and their results are easily quantifiable. We can see the results of their labor and the need to pay as agreed upon should be clear.

Unfortunately, those who go enter an agreement with contractors do not always follow through and pay as agreed upon.

There are times when even though the work is clearly complete, construction workers or subcontractors struggle to get payment for their work. There are legal tools that help construction companies get the payment they are owed, one of the most notable being a mechanic’s lien. As long as an enforceable written contract is present, the construction company or subcontractor can generally file a lien against the property where they completed work. This is particularly relevant in today’s economy when construction projects are booming throughout the country.

Rate of construction projects increase in 2022, experts predict continued growth through 2023

According to Dodge Construction Network, a company that focuses on providing data, analytics and other information about the commercial construction industry, the construction sector had huge growth throughout 2022. Nonresidential building construction starts this year went up 37% compared to rates in 2021. Rates were high in October, signaling that the surge in construction project starts will continue through 2023.

Although business is booming, the boom is only beneficial if contractors get the payment as promised. When this does not happen, contractors can use a mechanic’s lien to help secure payment. The process generally begins with preliminary notice which basically provides notice that payment is due followed by a notice of contract or subcontract and recording of the lien at the registry of deeds in the county or district of the property.

Mechanic’s liens can offer a legal path towards payment

A mechanic’s lien can help construction companies get payment, but the laws that govern the path towards payment are complex. Although the above provided a general outline, the details vary depending on the situation and a failure to get it right can result in a lien that is not enforceable. The Law Offices of Alan. M. Cohen LLC have experience in the preparation of paperwork to get the lien as well as the steps needed to enforce the lien and get payment. We know how to get the job done and will use this knowledge to get your business the payment it is entitled. Contact our firm at 508-763-6604 or send an online message today for a free consultation.

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