Monday, September 24, 2012

Liens Are One Way to Protect a Contractor's Right to Payment

As the primary contractor or a subcontractor or materialman, getting the construction or supply contract is the first order of business. The second? Ensuring you get paid. Without either, your business will wither and die. Properly structuring your contract is necessary for both.

The law provides contractors, subcontractors, and materialmen with several payment remedies
Construction_project
including bonds, liens, and claims under a provision called the Prompt Pay Act.  Those who provided services or materials for the construction or improvement of private property but did not receive payment on a reasonably timely basis may file a lien in the amount that is past due to secure the right to payment. Filing a lien creates an interest in the property in the amount filed.  A number of states disallow companies and individuals from filing liens against public property or projects but most public projects require bonds. In such cases, the contractors would pursue payment remedies against the bond.


To finish reading the article, Protecting Your Right to Payment: Liens, click on the link.


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