Construction lien
A claim made against a property by a contractor or another professional supplier of labor or materials for work on that property, designed to protect contractors in the construction profession from a lack of payment by the property owner for services rendered.
A construction lien is a legal claim placed on a property by a contractor or supplier who has not been paid for work performed. It ensures that the claimant has a legal right to seek payment, but it also requires careful handling to avoid complications in property ownership or refinancing.
Used in a sentence
A construction lien was filed to secure payment for the work completed on the property.
Synonyms/variation
Mechanics Lien
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Successfully Navigating Construction Lien Waivers
Getting paid can be one of the greatest challenges in construction and has often been the detriment of construction projects. To combat this challenge, issuing lien waivers has become standard practice in the industry. Lien waivers facilitate transparent and secure financial transactions between parties involved in a construction project. These documents not only confirm the […]
How to Prevent Mechanics Liens on Any Construction Project
In construction, when a contractor or supplier is unpaid, they can typically file a mechanics lien on the property. It’s a powerful tool to balance the power dynamic on a project. But no one likes mechanics liens — owners don’t want a lien filed on their property, and contractors would rather get paid on time […]
Construction Liens Explained: How Unpaid Contractors Recover Payment
In construction, there are many forms of recourse available to contractors and suppliers who haven’t been paid. First and arguably foremost amongst them is the construction lien. Construction liens are a unique and vital recovery method available to those who go unpaid (or underpaid) after furnishing labor, supplies or equipment on a construction project. Lien […]
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