Perfektion: Standardizing the Construction Lien Law

05-Mar-2012

Ever since Thomas Jefferson co-authored the lien law in the United States over 200 years ago, construction liens (mechanic's liens) have been used as a credit management tool for contractors and suppliers. Today, every state supports some form of construction lien rights. While some states' statutes are more effective than others, there is no standardization of lien statutes from one state to the next, and it’s unlikely that legislative change for a uniform lien act will happen anytime soon. However, what is common among all states is that their statutes are timeline driven. Regardless of which state, the greatest mistake that we see in attempts to preserve lien rights is to adopt a lien management plan where the deadlines of the statutes are used as the default timelines.

For example, if the statute requires that a preliminary notice must be served to a homeowner 45 days from the first date of work, the default strategy is to serve the notice on day 45 (or not at all). If a lien must be filed within 120 days from the last date of work, the default strategy is to file on day 120. The implications are obvious - frantic last minute efforts, missed deadlines, lost lien rights, etc. Then we blame the system and proclaim that the lien law is ineffective. Since most trade contractors don't have the time, tools, or training to properly manage these activities, the results are often costly, ineffective, and frustrating. The best option is to outsource lien management to a credible lien service provider.

The traditional providers of construction lien services have been secretarial in nature. They simply prepare, serve and file lien documents. The need for a particular service, and the timing of the service, is left up to the client. This service model requires that the client has extensive knowledge of the lien laws, and a system to track statutory timelines. In most cases, it also requires that the client can provide accurate legal descriptions and ownership information for the property.

Perfekt Inc. is more than just a lien service provider; we are a lien management company. The Truth About Construction Lien Management is that using the proper process for managing lien rights is more effective than following the lien law’s defaults. Perfekt has put together a proven process, Perfektion, to standardize the lien law process in a proactive manner, utilizing the lien law as it was originally intended. Perfektion simplifies the complexities of liens, and improves the flow of construction funds to our clients - trade contractors and material suppliers. We have developed our service on a cloud-based platform with leading edge technology. Our new technology allows us to electronically file documents at the county courthouse in an instant. We check and double-check a property’s information by researching county data. We also scan all of our clients’ documents and store them electronically for six years. With our system, our staff tracks, monitors, and reports statutory timelines for our clients in real time. Put all of this together, add in proactive proven timelines, and you get the most cost effective, and best possible way to manage your lien rights – Perfektion by Perfekt.

Perfekt recognizes that the lien law is not a perfect law; the objective should not be to file liens, the objective should be to get paid in a timely manner and reduce the need to file liens in the first place. A proactive and standardized strategy for managing construction liens can dramatically improve the flow of construction funds, and reduce the need for costly liens. See how Perfektion by Perfekt improves financial performance for trade contractors and suppliers; go to www.GetPerfekt.com and start perfecting your lien rights today!