Common Construction Lien Mistakes That Can Cost You Your Payment Rights

You finish a job. The work is of quality. Everyone’s happy with what you built. Then the invoice doesn’t get paid. You’re sitting there wondering what happened and what you can actually do about it. This happens more often than you’d think in construction.

The thing is, most contractors and suppliers don’t realize they’re making mistakes early on that kill their ability to collect later. If you’re in this position, understanding how liens work matters.

Bitman Law construction liens expertise can show you how to protect yourself, but first, let’s talk about what goes wrong.

Waiting Too Long To File

Time is everything with liens. You’ve got a deadline. Miss it, and you lose your right to file completely. Most people think they can file a lien whenever they want. They can’t. Each state has different rules, and in some areas, you’re dealing with days instead of months.

The time limit varies depending on the location. Some states count from when the work was stopped, while others start from the last day you delivered the materials.

It is often the case that only after a contractor has gone to great lengths to find the payment missing, weeks may have already passed. Suddenly, you are beyond the deadline, and your only course of action is to take legal action; it is more expensive and takes much longer.

Missing Notices And Documentation Requirements

Before filing a lien, you are usually required to give notice to the owner of the property. This isn’t optional stuff you can skip. It’s a requirement that varies by state. Some places want written notice delivered in a specific way. Others have particular timeframes. Getting this wrong means your lien might not hold up if someone challenges it.

Then there’s the paperwork trail. Keep invoices. Keep payment records. Keep emails about what was promised. Document everything you do on the job. When you need to file a lien, you’ll have to prove what you did and what you’re owed. Vague records make that impossible.

Incorrect Information On The Lien Document

Small details matter way more than they should. Your company name needs to match your legal documents. The property address has to be exact. The amount you’re claiming should be accurate. If the property owner’s name is wrong or the legal description of the land is off, your lien can get thrown out in court.

This may seem simple, but it frequently takes people off guard. They rush through filing because they’re frustrated about not getting paid. Mistakes happen. Then they find out their lien isn’t valid, and it’s too late to fix it.

Not Understanding Payment Priority

Here’s something that surprises a lot of contractors. Your lien doesn’t automatically put you first in line for money if a project goes bad. Other liens might have priority depending on when they were filed and what the law says.

If the owner doesn’t have enough money to pay everyone, knowing where you stand matters. Sometimes you’re second or third or further back. That changes what you can actually collect.

Skipping Legal Help When You Need It

This is where contractors really hurt themselves. They think they can handle a lien situation alone because it seems straightforward. Then, when problems pop up, they don’t have anyone in their corner who knows construction law. Small mistakes become big problems.

Bitman Law construction liens specialists understand these details because they work with them constantly. Obtaining legal counsel early is much cheaper than attempting to rectify the situation after it has completely fallen apart.

Protecting What You’ve Earned

Construction work is not easy. You deserve to be paid for it. Liens are there to safeguard you. However, they function only to the extent that you employ them properly.

Make sure you file your application on time. Be sure you are sending the correct notices. Ensure that you have your paperwork in order. Know the details of the regulations in your state. And when it gets difficult, don’t try to manage it by yourself. That is the point when things become messy.

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