Most of us know that construction in America is built on a credit model. The property owner receives a construction loan to develop or renovate a property. The general contractor and subcontractors provide labor and materials on credit terms by submitting a draw request and then wait 30 to 60 days for payment. Building material suppliers furnish material and equipment on credit terms. At the end of the day, everyone hopes that the project will finish without incident and payment will flow from the lender to the owner to the contractors and then material suppliers.
However, not all construction projects run smoothly. Fortunately, most states provide remedies for the contractors and suppliers by permitting them to record a claim of lien to secure the unpaid invoices. Public agencies permit the same parties to submit a bond or retainage claim to secure unpaid invoices on public projects.
Click here to Contact Us. We would be glad to discuss our preliminary notices and lien claim services and how it differs from lien vendors lien perfection software programs. Don’t be misled into thinking that an inexpensive lien service is offering anything other than a false sense of security as it sends out preliminary notices and/or lien claims.