Click here for more information on California mechanics liens, or give LienItnow.com a call at 888-543-6765.
Deciding to file a mechanics lien is a often a difficult decision. It should not be. Many companies do not want to upset their customers by filing a mechanics lien, but a mechanics lien is the only way that the law permits you to securitize the value of the labor and materials you provided to a project. Rather than upsetting a customer, companies will simply allow the mechanics lien deadline to pass, thereby waiving a valuable legal right.
However, the reality is that a mechanics lien can have an effect that results not only in your company getting paid more quickly, but also as a company that will tolerate only so much when payments are not made for work or materials provided to a project.
Here are some suggestions to help you decide to go ahead with deciding to file a mechanics lien. Each “yes” answer is worth one point. If you reach 2 or more points, then it may be time to decide to file that mechanics lien.
Have payments on the project been consistently late?
Has the amount owed to you exceeded your internal limit on receivables?
Is the deadline for filing a lien approaching?
Have you completed your work or delivered your materials more than 30 days ago?
Have you heard of other companies filing liens on the Project?
If you answered yes to more than one of these questions, then you may want to file a mechanics lien claim. If you feel nervous about actually filing a construction lien before giving any notice, you can always provide the owner and anyone you have a contract with what is called a “prelien notice” or “notice to owner.” It’s a warning shot that lets everyone know that you’re about to file a construction lien before you actually pull the trigger.
The nationwide mechanics lien filing tools provided by LienItNow.com complete the job of collecting unpaid project money. File a lien on the property with ease through our online system. We can help with all the different documents you need for a property lien. Use all the tools at your disposal, use LienItNow.com.
Credit managers aren’t lawyers, but they do need to know the law…at least as it relates to keeping their receivables secure and preserving the company’s legal right to collect. When securing a receivable is not done, or isn’t done correctly, collecting the money owed can become more difficult.
Construction projects in general provide a special legal right to collect money: the mechanics lien or construction lien claim. Depending on what State the project is located in, different rules can apply to filing a mechanics lien. If you are not using a construction lien filing service like LienItnow.com, then you should make sure you know the rules to filing a property lien in that State.
To secure your collections you don’t need to play hardball with your customers. Friendly phone calls can work just as well as threatening letters, and when payment is still not received, going the legal route by filing a mechanics lien has a big effect. Having a solid compliance system can mean the difference between receiving prompt payment and wasting valuable time and effort and not getting paid.
Questions that often arise in any given situation are:
Each of these questions are ones that credit managers ask themselves every day, and many of the answers vary state to state. Having a company like LienItnow.com to assist you in answering these questions can be invaluable.
For more information, visit www.skypro.com or call Mike Dancha at 1-800-800-WASH.
In our line of business, we deal with a lot of credit managers. From large to small companies, each one has a different way of doing things and ensuring that the company gets paid for the work or materials they provide to a construction site. While placing a mechanics lien or a construction lien on a property is one way to secure payment, there are several other steps that credit managers should follow to keep those accounts receivables down to a manageable level.
Over the next couple of posts, we’ll be looking at ways for credit managers or account managers to maximize their collections potential and become one of the most valuable people in their company.
Interpreting creditworthiness from the start is a main goal of a credit manager. Running a credit check on potential customers is important, but what kind of check should be run. The normal reports from Dunn & Bradstreet provide generic, not always useful information. Here are some things that LienItNow’s Credit Check department does that you may want to use yourself.
The length of time the company has been around.
If the company is still filing annual reports with their State of Incorporation.
The company’s average credit line and hight available credit line
Average turnaround on paying bills in number of days.
The length of time with the company’s current bank.
How long the company has been doing business with its trade references.
Try checking into those items and you may find yourself spending less time chasing money. Remember, the credit manager’s job is to be proactive, rather than a reactive. In the next post we’ll discuss securing your right to collect.
With the economy still not back on track, every day we get more calls and emails asking about the filing of a mechanics lien or bond claim. With financing still shaky, and owners and contractors running out of money, non-payment issues abound.
At Lienitnow, we take the time to double check owner information. More often than you’d think, we find that the owner listed on the construction contract is not the same owner that holds the deed to the property. Sometimes, in homeowner cases, we will find that the owner listed on the contract does not actually own the property, his wife does, or another relative owns the property. In some cases, we’ve found that a nickname was used, rather than the legal name, on the residential construction contract.
On commercial projects, many of our clients assume that when they are building a Target or a Albertsons, that these companies are the actual owners of the properties. In fact it is rare for a large corporation to own a property on which their store is being built, and even rarer for the record name of the property owner to be the same as the parent company.
This issue is more complicated when your work is only on a portion of a property that houses multiple street addresses. As is clear from the mechanic’s lien statutes, failure to properly name the owner of the property can be fatal to the lien. With that in mind, finding out who owns the property is key.
Whenever you file a mechanics lien, you should make sure that you have looked into and verified the owner of the property with the local government authority that keeps track of property ownership. At LienItNow.com, which provides mechanics lien filing services, the company performs this service for you, and verifies the owner with the county clerk. If the owner you have is different that the one found by LienItNow, you can then make a decision as to whether you want to perform a title search to delve further into the issue.
Just be sure to double check the real estate owner information before you file your mechanics lien and you will be glad you did.
According to the Attorney General’s office, the New Jersey Residential Construction Contractors left homeowners with dangerous and unsafe conditions, including fire hazards. The lawsuit, which was filed by the state authorities in Bergen County, was filed against the following companies: A-1 American Construction Inc., A 1 American Chimney Limited Liability Company, Brick City Chimney Service LLC., Brick Chimney Service and Cleaning Inc., and Roofing Police or Roofing Squad. The lawsuit has also named the alleged owners and co-owners of the companies: John Kot, 41, of Garwood and Gabriel R. DaSilva, 43, of Paterson.
The State indicated that the allegations are a result of an investigation that revealed wide randing Consumer Fraud Act violations. In at least one case, a company was hired to perform a roof repair, but refused to come back and fix a leak that resulted from the repair.
The state is seeking restitution for consumers, and has requested that the companies and the individuals be fined in order to cover the Sate’s costs for the investigation and attorney fees.
After 11 years of once again dominating the New York skyline, the Empire State building can no longer claim that it is the tallest building in NYC. One World Trade Center, being built at the site of the fallen twin towers, will eclipse the Empire State Building’s claim of being the tallest building in New York.
The Empire State Building, the a 102-story landmark skyscraper and American cultural icon in New York City at the intersection of Fifth Avenue and West 34th Street., is 1,454 ft (443.2 m) high. The name is derived from the nickname for New York, the Empire State. It stood as the world’s tallest building for 40 years, from its completion in 1931 until construction of the World Trade Center‘s North Tower was completed in 1972. Following the September 11 attacks in 2001, the Empire State Building was again the tallest building in New York (although it was no longer the tallest in the world). Once the new One World Trade Center is completed, the Empire State Building will once again be demoted to second tallest building in New York.
Port Authority Executive Director Patrick Foye told reporters: “Weather permitting, we expect that we could exceed the height of the Empire State Building on Monday,” When completed, One World Trade Center will stand at 1,776 feet (541 meters). The completion date is currently scheduled for 2013.
One World Trade will be even taller than the former twin towers. The north tower of the Twin Towers stood 1,727 feet (526 metres) including its antenna.
For more information on the progress of One World Trade Center’s construction, click here.
Iowa is charging into the future, and not by cavalry. The State is considering making Iowa Mechanics Lien Fiing a state function, rather than a county function, and is on the verge of making the filing electronic. Now that’s some interesting news. Let’s see if it gets passed.
Iowa House Bill HF675 proposes to change the Iowa Mechanics Lien Law in a couple of ways, but the most important is that it seeks to create a statewide construction registry internet website that would be administered by Iowa’s Secretary of State. On that construction industry internet website, anyone eligible for a mechanics lien who furnished materials or labor would be able to post their mechanic’s lien electronically online.
As of now, the filing of a mechanics lien is a cumbersome, painful process. The filing is similar to that done in most states: send it to a county clerk or district court, hope they see it and file it, and hope they don’t get confused or try to interpret a statute incorrectly and reject the lien. Attempting to file a lien can be pretty nerve racking.
The new registry, however, would allow all interested parties, in fact the public at large, to view the registry and see whether any mechanics liens exist on a certain property. It would also come in handy to owners, subcontractors and suppliers because it would provide real time, up to date information on what mechanics liens are in play, keeping payment flowing to the proper parties. For banks and lenders, it would provide a more accurate way of determining whether liens exist on the property prior to closing a sale or financing.
With every bill, however, comes new requirements. Here are the couple of new requiremets the Iowa Mechanics Lien Bill proposes:
1. The general contractor or owner or developer must post to the state construction registry internet website a notice of commencement of work, and
2. Easch subcontractor must post to the registry an Iowa preliminary notice, or Iowa Notice of Furnishing, informing the owner that materials or labor are being provided. If the sub-contractor does not file the notice, they are not entitled to a lien.
Like many bills passed over the past few years, the Iowa Mechanics Lien bill was the reult of the financial crises. Over past several years numerous developers, construction companies, and homeowners have gone out of business and bankrupt. The filing of mechanics liens in the wrong counties, incorrectly, and the improper recording of the liens by clerks led to numerous litigation, and the statewide system is thought to resolve the issue.
If the bill becomes law, it could be another moment where Iowa takes the lead for other states to follow. A statewide system is aleady used for Judgments in most states…extending it to mechanics liens just makes sense.