Construction is a difficult industry. Surviving includes a significant work ethic, excellent problem-solving abilities, and a commitment to client service. Most contractors would tell you that it’s all worth it to make their customers’ dreams a reality. It’s even wonderful when the cheque arrives in the mail. When a contractor works on a property, they have the right to be compensated for their efforts. That is the fundamental basis for the existence of construction liens.

What happens if contractors are not paid? We know it isn’t easy to believe, but individuals in this world don’t keep their half of the bargain. The contractor might have completed the work following the contract, only to be left empty-handed by the customer. This kind of messed-up situation usually ends up in contractors filing a Construction Liens to confirm they get all the money your business owes to them.

In this article, we will explain to you what is Construction liens and how to prevent construction liens so that your business is safe and you can maintain healthy business relations with the contractors and other workers for a longer time.

What Is a Construction Liens?

A construction lien, also known as a mechanics lien, is a sort of protection resource in the property granted to suppliers, contractors, and others to collect payments on construction projects if they have not been paid completely or at all.

Construction Liens is a powerful and advantageous tool for the suppliers and contractors since it gives a strong surety for their payments fulfillment. 

Every company should abide by Boca Raton Construction liens laws which regulate the payment deadlines, notices, and the entire procedure of filing construction liens claim by the construction professionals.

 

How to Prevent Construction Liens?

  • Try to Clear All Your Payments On Time

The most efficient and easiest way to protect yourself against any Construction Liens claims would be to pay up your suppliers, constructors, and workers completely and on time. If there are any payments due, then try to send them out as soon as possible. 

Meanwhile, keep ensuring your suppliers, contractors, and workers that you will be paying them soon with any strong source they can depend on. This will help you get some more time to clear all the payments and save your business from lien claims. 

However, we realize that you would not be reading this article if you could resolve the issue so simply. For that, read on to the other solutions.

  • Keep a Backup Financial Setup In Case You Run Out of Money

Suppose you have been unable to pay your suppliers and constructors that do not state you as a fraud in Boca Raton. Construction Liens claim that the contractor has not been paid within the set deadline. Several honest people genuinely run out of money and time, hence, miss the deadline of payment. 

You can still turn this around by having a financial resource on backup. This strategic move will save you time and prevent your business from all the lien claims. This will also portray your strong image to your contractors that you are truly committed to paying them on time and value their work, strengthening your corporate relations with them.

  • Verify Your Contractor’s Credibility

Another way to protect your business from lien claims would be to investigate and ensure the credibility of your contractor in Boca Raton. Construction Liens is a serious claim, and if you see a contractor filing multiple claims, then it’s a big red flag, and you should not hire them as they will surely create problems for your business.

You can check the credit and payment history of the contractors, subcontractors, and suppliers to get a better picture of how they deal with their clients. You may also check with their previous clients and inquire about their experience to know what you are going to get yourself into.

  • Ask For a Lien Waiver

We know this might be a bold move, but it is the strongest of all solutions that we have presented to you so far. A lien waiver is a contract between the business and the contractor in which the contractor quit all their rights to claim a construction lien on your business. 

If you are operating your business in Florida, you cannot make a lien waiver agreement with the contractor before labor. However, you can finalize it afterward before the payment finalization.

Conclusion

Boca Raton construction liens laws are strict like any other state, which is why it is better to prepare yourself beforehand. If you still have queries, you can get in touch with a law firm such as The Law Office of Thomas J. Maccari P.A. to help you out and guide you through the entire process.

We hope this guide will help you protect your business from any lien claims and enable you to maintain good corporate relationships with your suppliers and contractors.

What Are Construction Liens and How to Prevent It?

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