OP, I’m a small structural engineering firm owner (sole prop) that often works as a sub to GC’s or framing contractors to help with remodels/reno’s/etc. In the three years I’ve been open, I’ve missed out on at least $25K in uncollected fee’s, at least $10K of which was directly a result of failing to adequately research and understand my state’s timetables and requirements for filing a mechanic’s lien.
My advice to you is simple: pay a local attorney a couple hundred bucks for a consult and get an understanding of the lien laws & requirements specific to your state and specifically, the counties you do most of your work in (they can vary county to county in my state). Establish a standard of care for your business for poor payers/non-payers - First Reminder, Second Reminder, Nastygram on attorney letterhead, notice of intent to lien to owner, lien filing, etc.
Some things you’ll want to ask about: time requirements for filing, notification requirements to the owner, lien position relative to other debt, standard forms for your county or attorney prepared template forms, etc.
It MAY be relatively easy to filing a lien in your state (mine has a simple two page form with 6 lines I need to fill out in to do it) but there can be strict deadlines and other requirements (legal description of the property and client’s name specifically were mentioned to me) that ,if not followed, invalidate any claim you’d make against the property. You may not get a second chance to correct any errors so make sure everything on the intent to lien is CORRECT the first time you file. Triple check it and then check it again.
OP, I’m a small structural engineering firm owner (sole prop) that often works as a sub to GC’s or framing contractors to help with remodels/reno’s/etc. In the three years I’ve been open, I’ve missed out on at least $25K in uncollected fee’s, at least $10K of which was directly a result of failing to adequately research and understand my state’s timetables and requirements for filing a mechanic’s lien.
My advice to you is simple: pay a local attorney a couple hundred bucks for a consult and get an understanding of the lien laws & requirements specific to your state and specifically, the counties you do most of your work in (they can vary county to county in my state). Establish a standard of care for your business for poor payers/non-payers - First Reminder, Second Reminder, Nastygram on attorney letterhead, notice of intent to lien to owner, lien filing, etc.
Some things you’ll want to ask about: time requirements for filing, notification requirements to the owner, lien position relative to other debt, standard forms for your county or attorney prepared template forms, etc.
It MAY be relatively easy to filing a lien in your state (mine has a simple two page form with 6 lines I need to fill out in to do it) but there can be strict deadlines and other requirements (legal description of the property and client’s name specifically were mentioned to me) that ,if not followed, invalidate any claim you’d make against the property. You may not get a second chance to correct any errors so make sure everything on the intent to lien is CORRECT the first time you file. Triple check it and then check it again.
God speed OP; I’m pulling for ya!