Top 3 Lien Challenges for Large Construction Firms
Large construction firms face unique challenges when managing their lien filing and tracking process. Much of this complexity comes from the size, scope, and number of projects they're involved with at any given time. Large construction firms will find it worthwhile to periodically revisit their lien process to ensure it is functioning optimally and handling the different lien challenges large construction projects face.
# 1 - Working in Different States
Every state has a different lien notice and filing process. Some require notice when a project begins, others don't require notice until there is an issue with payment. If you use a standard project start process across your entire firm, you want to make sure it works for every state you're working in. The process should require you to at least check, at certain key points in the timeline, whether an action should be taken to preserve your future right to file a mechanics lien.
#2 - Enforcement Timeline
Large companies running numerous projects will also need to track lien expiration deadlines in each situation. Construction businesses should work with an attorney to determine the best course of action for each lien. Releasing the lien, filing a collections action, filing for an extension, or taking another step is a business decision, but one where regular council can help businesses collect the most possible from each situation. Working with a law firm you trust that has multi-state experience and understands your process from job sheet to invoicing can help you streamline this step. They'll be able to advise you on each situation and step in to run legal actions when it makes sense.
#3 - Public and Private Projects
Many large construction firms work on both private development projects and government projects. The methods used to secure payment are completely different. Mechanics liens help secure work on private projects while bond companies ensure payments are made on public works. Dealing with bonds presents a different set of requirements and requires someone on board who can read and understand complex contracts. Since public projects require a completely different set of activities to ensure deadlines are met, having a different process in place to manage public projects is key.
With all the nuances in the lien process specific to large construction firms, it makes sense that these companies keep an experienced construction law firm on speed dial. The team at National Lien & Bond has the capability to handle bonds, liens, and other challenges faced by large construction companies working on big projects in multiple states. We can help you improve and streamline your internal processes to make sure you aren't missing a deadline and give good advice on the best steps to take when simply filing a lien doesn't result in collection.
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