Aldrich Law Firm, Ltd.
Aldrich Law Firm, Ltd.

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Construction companies may obtain liens for unpaid services

Here at the Aldrich Law Firm, we understand that there are many situations in which construction companies will face disputes involving nonpayment. When our clients are presented with such circumstances, we strive to provide them with the guidance they need to obtain their deserved compensation.

One way of gaining leverage in construction disputes is to obtain a mechanic’s lien (also known as a construction lien), which the Cornell University Legal Information Institute describes as a security interest in any property for which a laborer has provided work. These security interests can also address the materials which a laborer has expended in performing services. 

The LII describes two ways in which these liens can be used by construction companies that did not receive compensation for their work. First, a mechanic’s lien can be used to encourage payment, as the lien will generally remain until the lien holder (the laborer or construction company) receives compensation for the services that were rendered. Second, a lien holder may be allowed to retain possession of the property if the client never pays. This means that, should a construction company never receive its payment, it is at least compensated by the property value it gains from the mechanic’s lien.

While it is undesirable to be engaged in a construction dispute, there are many remedies available to construction companies that are facing nonpayment issues. To learn more about the services we offer regarding mechanic’s liens and other construction dispute issues, please visit our page on construction litigation

John P. Aldrich
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