Oftentimes, there are instances in which property owners will end up not paying contractors, construction workers, subcontractors, and other similar professionals for work that they have completed. As a result, these same professionals will end up having virtually no choice but to seek out the proper legal remedies in order to ensure that they are able to receive the payment that is owed to them. This can result in the issuance of construction liens, which, generally defined, are legal claims documents that are able to be used in this specific industry, and is also used to help preserve the right to compensation for these types of professionals. Typically, construction liens are filed as a form of claim by contractors; however, this specific type of documentation is considered to be extremely valuable in terms of professionals seeking to obtain unpaid compensation for services that they have provided.
When it comes to the laws that involve construction liens, it’s important to note that these vary depending on the state. Furthermore, they are also referred to in different ways, such as being called mechanic’s liens in the state of Texas. These help to essentially guarantee that payment will be made to these types of professionals, and they can also extend to suppliers as well. Oftentimes, mechanic’s liens are utilized to help ensure that construction projects of any kind will be completed, and will also remain in full effect until each and every responsible party has been paid what they are owed thanks to either a forced sale or foreclosure of a property to then pay tradespeople from the proceeds of the sale.
Furthermore, under current Texas state law, mechanic’s liens are able to be used in order to assist with addressing those who have not been paid in relation to a construction project. These liens essentially describe the following:
-The overall nature of a debt
-How much money is owed
-Information regarding the payees who are seeking to obtain compensation
Furthermore, these liens will also become a matter of public record as well, meaning that in the event that the debt isn’t paid to the affected professionals within a certain period of time, the end result will be the credit and ability to either sell or refinance a property greatly affecting the property owner.
As previously stated, each separate state across the country has adopted different laws in regards to who can file these types of liens, as well as defining the specific costs that are able to be covered by them. In the state of Texas, for instance, mechanic’s liens can be filed by the following professionals in order to assist with addressing nonpayment:
-General contractors
-Subcontractors
-Materials suppliers
-Fabricators
-Design professionals
State law also cover nearly all construction costs, including everything ranging from labor and surveys to equipment that is rented and materials that are used in a project. Furthermore, it can also cover virtually every other resource that has been used to model, build, or engage in repairs while a project is ongoing.