Construction projects typically require the efforts of multiple professionals. There may be suppliers who provide tile, lumber and other necessary equipment. Then, there are the skilled professionals who assist with drywall finishing, foundation repairs and a host of other complicated tasks.
It is quite common for the professionals involved in a construction project to only receive partial payment initially. They can then receive the balance of invoice amount after the completion of the project. This arrangement makes work more affordable for property owners and protects them in cases with poorly-performed services.
Occasionally, businesses deliver thousands of dollars of supplies or perform weeks of work, only to have a client refuse to pay them the remaining balance due. Civil lawsuits are sometimes necessary to obtain full payment for the work and materials provided for a construction project.
How litigation helps
State statutes recognize that some property owners default on their obligations after the completion of a construction project. The law actually provides a special opportunity for those involved in the construction sector.
They can request a mechanic’s lien against the property. Whether an individual installed bathroom tile or delivered the cut granite for countertops, they may have grounds to request a mechanic’s lien against the property if they did not receive payment in full.
They typically need to act quickly to secure the lien and then must enforce the lien shortly after obtaining it. The property owner has to pay what they owe or runs the risk of foreclosure, which could put their ownership interest at risk.
A mechanic’s lien, sometimes called a construction lien, prevents an owner from selling the property or refinancing it until they have fulfilled the financial obligation attached to the lien. In many cases, the threat of a lien can be enough to push a property owner into fulfilling their contractual obligations. Other times, construction professionals and materials suppliers may actually need to foreclose on the lien to enforce it and obtain the money they deserve.
Pursuing a civil lawsuit is a reasonable reaction to a client refusing to pay for construction services and materials they have already received. Mechanic’s liens are a crucial form of protection for professionals who do not receive full payment for services provided or materials delivered.