Tag: Liens

Georgia’s two-step process for pre-lien notices and lien waivers can challenge even the most experienced credit professionals. Missing any key deadline can result in a complete loss of lien rights, regardless of the money owed on construction projects. For example, failing to serve a Notice to Contractor by day 30, even by mistake, can cost you tens of thousands.

As a credit manager, you are likely familiar with the sinking feeling you get after learning a customer has filed for bankruptcy. Whether they are aiming to reconstruct or liquidate their business entirely, customers filing for bankruptcies can send even the most experienced credit managers scrambling.  

Those working in construction credit know all too well how important lien rights are on any project. Regardless of what stage a project is in or whether you are serving as a contractor or subcontractor, it is essential that a credit manager understands their lien rights in that particular state to best protect themselves from risk.

In the construction world, a mechanic’s lien is a vital legal instrument protecting laborers and suppliers. Without it, contractors and subcontractors lose legal protection, resulting in significant losses. Several factors influence lien rights. However, can other contracts or agreements, such as a non-disclosure agreement, override your right to file a notice or initiate legal proceedings?

NACM’s Secured Transaction Services (STS) provides and prepares construction credit professionals with several tools for success. STS handles projects and assists credit professionals in securing corporate receivables to ensure profitability.

Mechanic’s liens serve as a legal tool for both contractors and subcontractors. Their purpose is to establish security interest in a property’s title to ensure payment, so it is essential to be thorough when filing. One small mistake can cost you the right to enforce payment rights.

During NACM’s Credit Congress in Las Vegas, a panel of experts spoke of “risk transfer” associated with construction documents such as purchase orders, waivers, joint check agreements and more.