As an owner of a construction company, you expect the clients you work with to pay on time. You expect them to state if there is a problem early so that you can take steps to correct it.
Unfortunately, your last client was not straightforward. They asked for major changes after your project was nearly completed. You told them that they’d need to pay for what was done, and then you’d create new plans for the changes that they wanted.
The client was not happy about this and has refused to pay you. This means that your subcontractors and employees are going without pay, too. That’s why you’re looking into a mechanic’s lien.
This type of lien can be placed against a home or other kind of property if work was done but not paid for. This is beneficial because the owner of the property cannot normally sell a home or property until a lien is lifted. As a result, most property owners will take steps to pay off a lien quickly so that they can sell the property as soon as they’d like.
If they don’t pay it, the lien will come up when potential buyers perform a title search. If the property is sold, the new owner will be held liable for the lien, which is not what any buyer wants to deal with.
If you are struggling to get a property owner to pay for the work that you’ve done, you may want to consider mediation or arbitration first. If that won’t work, you may be able to use a mechanic’s lien or other kinds of liens to protect your interests in the property and to eventually get paid for the work that you and your team put in.