Category Archives: construction

Place a lien if you are not paid for your work

Instances where a contractor is not paid for his work are few but they do happen and this is when the poor chap does not know what he should do to claim his money. Construction companies give contracts of their projects to various contractors. The number of contractors involved in a project is completely dependent upon the size of the project. If the project is big and it requires several men to work on it, then the construction company will involve more than one contractor or else he will simply go with just one. The construction company pays the contractor on the basis of the work that has been completed. The pay to the contractor is dependent on which phase the work is on. So as and when the contractor completes each phase, he is paid for his work and simultaneously he in turn pays to the sub-contractors.

There are some construction companies who faces severe monetary crunch and are unable to pay the contractors on time. However, the contractors do not stop the work with the hope that he will be paid after the completion of the next phase and will also receive the amount in arrears. Now suppose he completes the entire project and keeps calling the construction company to pay him but see nothing coming out of their pocket. This is when he needs to take the legal course. All that he can do is place a lien on the project which means that as long as you are not paid for your work, no banks can mortgage the property. So for instance, if you are engaged in building a condominium for residential purpose and you are not paid in full by the company, you can place a lien on the entire project which will prevent the buyers to avail mortgage from banks.

This means that the construction company has to first clear all your dues and only once the lien is removed that he will be able to sell the apartments. Such types of instances are rarely seen but they do happen and whenever it happens, the best way to tackle it is taking the legal course and places a lien on the property. The construction companies are also aware of this phenomenon and therefore they ensure that they pay their contractors their full due. They also make sure that the contractors in turn clear the dues of other sub-contractors who were engaged in the project.

In case you need to place a lien on the project, the best way to do so is by talking to an attorney who will advice you on how you can proceed with it. Remember that placing a lien should be the last option and you should not do this if you do not find the company paying you. By doing this, it can also tarnish the relationship and hence it is suggested to be taken only after you have taken every possible option to claim your money.

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