At Emalfarb Law LLC and National Lien & Bond, we tell our construction industry clients that they essentially loan their clients money when they take on a job – whether as a subcontractor or a supplier to a construction project. What we mean by that is as soon as a client commits any resources to a project their customer has agreed to pay for, they assume the risk that the customer won’t pay when they’re supposed to or, at times, won’t pay at all.
How to Achieve Secured Status
Fortunately, there are steps you can take to put yourself in a secured position in almost every construction project situation. Unfortunately, no single solution gets you to that secured point. That’s because a number of factors go into determining how best to secure your future payments for the work you do or the materials you supply. Some of the major factors are:
- Where your project is located. Each state has its own laws that govern how mechanics or construction liens operate, and in most cases, you need to follow that state’s procedures strictly.
- Whether you met notice requirements. This relates to where your project is; depending on the state, you may have to notify the project owner of who you are and your role in the project if you want to be in a legal position to assert a mechanics’ lien if you’re not paid. Whether, when, and how you do that will vary from state to state.
- Who your customer is. If you’re working on a project for the federal government, you need to follow a different set of requirements than if you’re working for a private company. If your client is a state or local government, other requirements are likely to apply.
- Whether the job is bonded. If the job is bonded, you will likely have to follow a different path to securing your payments than if it’s not.
- The terms of your contract. Sometimes it’s possible to negotiate contract terms that will provide you with substantially greater security.
- What your status is. Depending on the type and location of your job, if you’re a sub-subcontractor or a supplier to a subcontractor, you may not have mechanics’ lien rights. Still, you may be able to negotiate yourself to a more secured position.
For more information about how you can secure future payments for your construction work, you can view our free webinar, “Protect What You Are Owed in Turbulent Times.”
Let Emalfarb Law LLC and National Lien & Bond Help Secure You
Emalfarb Law LLC and National Lien & Bond work together, along with a nationwide group of dedicated construction law attorneys, to help our clients collect what they’re owed for the construction project work that they do. We can help you put systems in place so that you understand what requirements you must meet to increase your chances of getting paid for every construction job you have, no matter where in the US it’s located. We can also help you meet those requirements, and in situations where you’re not getting paid, we will work tirelessly on your behalf to help you collect.
Securing your future payments takes work, but it’s work that, in our experience will pay off and is worth doing. Call Emalfarb Law LLC and National Lien & Bond today to set up a free consultation to learn more about how we can help you get paid. Our number is (800) 432-7799, or you can use our contact form to let us know how we can help.