The importance of lien services in the construction industry cannot be ignored. Even the smallest of construction projects go through the same process, protocols and procedures in order to complete successfully. In order to ensure that all the paperwork involved is current and in order and that all the parties involved in the project such as contractor and suppliers are paid for their services, many company offer their services. They exist solely to protect the rights their lien rights.
Here we will discuss five common but very important lien services offered by almost all companies specializing in lien rights. This will give contractors and suppliers a good idea about what each service does and which service should they opt for when approaching a lien company.
Preliminary Notice Services
The notice is specifically for the property owner. It is served to him as reminder or a notification that supplier or contractor is offering his services, equipment, material and/or labor to make improvements on your existing property. This could be adding new structures or remove/remodeling existing ones.
Mechanics Lien Services
This service exists for both personal and real property and goes by different names depending on the type of property it is. These lien services are placed against the title of the actual property. It states that you have a financial interest in the property and requires a lien release issued by the party placing the lien. Mechanics lean services are of great importance and a mandatory in construction otherwise the contractor have limited options to enforce payment it is owed.
Stop Notice Services
Stop notices are furnished by the contractor or supplier on a construction project. These lien services entail what supplies/material or services were provided or will be provided to the owner. It also outlines how much the entire project would cost and how much of it has bee already paid.
Bonded Stop Notice Services
There are different forms of stop notices as well. One worthy of mentioning is the bonded stop notice. It is meant mainly for the benefit of the property owner or general contractor. At a glance it is the same as a regular stop notice except that it is given with a bond in the amount of 125% of claim or lien. This ensures that the owner or original contractors are covered if they suffer damages as a result of the stop notice claim or lien.
Miller Act Notices
Last but not least the miller act notices are designed for projects that are federally funded. If a contractor or supplier is not paid for furnishing labor and/or materials to a federal construction project, they may file a Miller Act Claim against the general contractor's payment bond. Doing so ensure that they are given the amount they are owed.
These are five very important lien services. As a precaution all contractors, suppliers and vendors should make sure that they discuss their situation with qualified lien experts and seek out viable solutions. They are entitled to know their rights and how to use them effectively should the time come.