Utilize the Power of the Lien


Perfect (verb): Make (something) completely free from faults or defects, or as close to such a condition as possible.

When properly used, a construction lien is a very powerful and effective tool to collect payment. Perfekt is here to get you paid for the work you’ve done. If you need to file a lien, we will ensure the legal documents are completely free from faults or defects. However, we do much more than just file liens, we also are here to educate how to fully utilize the power of a lien.

Utilizing the Power of the Lien

Of course, there are statutory requirements that need to be followed for a lien to be properly enforced. Depending on the state, notices may need to be sent to the property owner and hiring party within a period of time prior to a lien. It is imperative that all the statutory requirements are followed; failure to do so can result in loss of lien rights.

Following preliminary steps will make your lien stronger and also improve the chance of getting paid before lien action is needed.

Filing a lien in the proper time period

State statutes require liens to be filed within a certain period of time from the last day of work. If you are unsure of your state’s timelines, we will help and can ensure the lien process is perfected for you.

Depending on the state, a notice of intent to lien may need to be served prior to filing. This notice spells out the fact that payment has not been received, and lays out the intent to file a lien if not paid within a certain period of time.

Regardless of the state, a notice of intent can be a great collection tool because it may get you paid without having to incur the expense and trouble of filing a lien. Notices can be used even when they are not required.

If preliminary steps were unsuccessful at collecting payment, a lien should be filed. Filing a perfected construction lien will help get you paid because it:

  • Gives you a claim to the property’s title
  • Prevents the property from being sold, transferred, or refinanced
  • Puts parties in breach of contract

The lien increases pressure on your customer, the bank and property owner to get you paid.

If a lien is unsuccessful in prompting payment, you have the right foreclose on the property. A foreclosure forces the sale of the house/property, at which point the first proceeds of that sale would be paid out to whoever has a lien.

In the construction industry, the main purpose of a lien is to protect the contractor. We are here to perfect the lien law process for you. If used correctly, our services will most effectively improve this process, getting you paid faster and easier.