Accident Lawyer. Divorce Lawyer. Criminal Lawyer. It’s clear what these lawyers do.
But what does a Lien Attorney do?
And why does my construction company need one?
What is a Lien Lawyer?
Lien attorneys protect your right to get paid for the hard work you do. Lawyers in this field of law make sure that the documents which are needed to get you paid are:
- Prepared correctly
- Mailed to the right people
- Filed in the appropriate public records
- Processed on time
- And will stand up in court
Of course, the first job of lien attorneys is to understand all the legalese. They also keep track of any changes in the law, maintain proper procedure, and pay attention to deadlines. Their clients are builders, sub-contractors, and similar professionals who do not have the staff or the time to devote to paperwork, legal developments and bureaucracy. A builder’s job is to complete projects. The lien lawyer’s job is to work in the background to make sure the builder is paid in full.
Special Rights Require Special Expertise
Not all providers of goods and services are entitled to secure their payment by filing and enforcing mechanics liens. Legislatures have assured this special right in order to protect companies which work in this important sector of the economy. But lawmakers have also enacted strict requirements which your company must comply with in order to benefit from the law’s protection. Some of the requirements are common-sense; some are more technical. The lien attorney has mastered all aspects of the mechanics lien process through years of training and experience.
Beyond the Basics of Mechanics Lien Law
Sometimes the number of documents can be overwhelming. Depending on the state, companies must mail various types of Preliminary Notices to owners, other contractors, lenders, and sometimes to others. The actual Mechanics Lien Form must state all the details of a company’s claim with accuracy and completeness. In addition, there are different types of Lien Release Forms to consider.
Specific projects can pose problems that cannot be addressed by a standard form. Many projects are complicated by multiple change orders. In some instances, the issues of bonding, indemnification and related matters come into play. Your company may face the regulatory challenges of doing projects for local, state and federal government entities.
All of these possibilities call for a lien lawyer, not only with legal knowledge, but with the professional insight of someone who regularly works with building contractors and understands commerce in general. — Your company needs a lawyer who is equipped to exercise the necessary judgment to turn a company’s legal rights into prompt payment.
NLB'S PROCESS
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Learn More About Mechanic Lien Compliance by State
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Bond claims are generally used when you’re working on a government construction project. This could be a project for your local municipality or when you’re doing work at the state level. When working on these types of projects, your payment is generally ensured through a bond, so instead of filing a mechanics lien, you file a bond claim.
WHAT IS A BOND CLAIM?
In many ways, bond claims are similar to mechanics liens. They’re used by contractors and materials suppliers to construction projects, are fairly inexpensive to file, and tend to be very effective. A surety company, usually an insurance company that deals in bonds, is responsible for paying for the project in the event the responsible party does not, so there is a strong incentive to make sure you get paid.
WHAT IS THE DIFFERENCE BETWEEN A BOND CLAIM AND A MECHANICS LIEN?
“These are most common when working with governments and public projects. It provides a way to ensure subcontractors can be paid without having to file a lien against government property or a lawsuit against the government. “
THE PROCESS
File Your Bond Claim:
You start by filing your bond claim. While this sounds simple, there are a number of complex requirements that vary from state to state. You have to comply with each of these requirements in order to make sure your claim is correct and can be enforced. States also have different timelines that cover when the bond claim is due and where they need to be filed.
Submit Your Backup Materials:
When you file a bond claim, the surety company will probably want to see some sort of proof of outstanding payment and collect a sworn statement from you. You’ll need to gather this material for the company quickly to keep your claim moving forward.
Follow-up
Once you’ve filed your information, the surety company will then reach out their customer to notify them of your claim. They’ll request information about your work and claim and try to see if the problem can be resolved. This is often where the process slows down, so be sure to follow up with the surety company regularly and encourage them to approve your claim.
Enforce Your Claim:
If your claim is denied or payment is taking an unreasonable amount of time, you need to start thinking about filing a lawsuit against the surety company. While this is a last step and will certainly cost you more out of pocket, it will certainly get their attention.
NLB'S PROCESS
WHY CHOOSE NLB?
WE GET YOU PAID!
Learn More About Mechanic Lien Compliance by State
Stay Updated On Legal Compliance Changes in Your State