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Common Mechanics Lien Mistakes


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The term "mechanics lien" can get thrown around on a construction project, and sometimes, contractors and suppliers need the remedy badly to avoid a default account. The lien laws can be …

The term "mechanics lien" can get thrown around on a construction project, and sometimes, contractors and suppliers need the remedy badly to avoid a default account. The lien laws can be hyper-complex, however, which means its easy to make mistakes.

This presentation goes through some of the most common mistakes made with mechanics lien claims.

It is presented by zlien, the industry's leading platform for mechanics lien and bond claim management, which is used to file thousands of lien claims each year.

Published in: Business, Technology
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  • 1. Common Lien Mistakes
  • 2. Construction Credit Knowledge Every Wednesday
 1pm CST
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  • 3. The Mechanics Lien Is The Best Remedy Available To Contractors And Suppliers.
  • 4. Construction Lawyers Agree: “A personal guarantee or joint check agreement is nice to have, but not a substitute for a lien or bond claim.” Joe Virene, Esq. Texas Subcontractor & Supplier Legal Guide
  • 5. Construction Lawyers Agree: “An Unpaid Contractor’s Best Friend” David T. Arena, Esq. Illinois Mechanics Liens: Di Monte & Lizak LLC
  • 6. Construction Lawyers Agree: “An essential collection tool for contractors and material providers in construction projects.” Paul C. Bauducco, Esq. Smart Tools of the Construction Industry
  • 7. Previous webinar explaining why the mechanics lien rules.
  • 8. Why Mechanics Liens Rule View This Other Presentation To Learn Why Mechanics Liens Work To Get You Paid ! Or Articles Here: Why Lien
  • 9. Common Lien Mistakes
  • 10. It’s Complicated
  • 11. Mistake #1 center of the world syndrome
  • 12. Mistake #1 center of the world syndrome you’re probably wrong
  • 13. Mistake #1 center of the world syndrome “I’ve dealt with liens before, I know the law.” “I’m going to follow Florida’s rules everywhere because it is the most strict.” “I’ve filed tons of liens and never have any problems.”
  • 14. Mistake #1 center of the world syndrome Mechanics lien rumors are not mechanics lien laws.
  • 15. Lien Deadline Calculation Rules Private Projects
  • 16. Bond Deadline Calculation Rules State Projects
  • 17. Notice Requirements Private Projects
  • 18. Lien Waivers Allowed / Prohibited In Contract
  • 19. Mistake #1 center of the world syndrome This mistakes results in you missing notice requirements, filing your lien late, filing without rights, and more.
  • 20. Mistake #2 details, details, details
  • 21. Mistake #2 details, details, details Used in Lien: A&L Construction Corp. ! Formal Name: A. & L. Construction Corp. !22
  • 22. Mistake #2 details, details, details Georgia mechanics lien notice said “365 days” instead of “395 days.”
  • 23. Mistake #2 details, details, details Waiting until the last minute and forgetting about: — Recorder delay — Unpaid balance states — Murphy’s Law
  • 24. Mistake #3 property descriptions
  • 25. Mistake #3 property descriptions How you identify the project is really, really important, and most states have heightened requirements.
  • 26. Mistake #3 property descriptions 123 Main Street Seattle, WA 98134 Subdivision: Breatheway Range: 105 Lot: 66 County: King Square: 4-A
  • 27. Mistake #4 your right to lien
  • 28. Mistake #4 your right to lien Not licensed? ! You may be working for free. Yes, that means you can’t lien either.
  • 29. Mistake #4 your right to lien Notice Requirements Private Projects
  • 30. Mistake #5 being greedy
  • 31. Mistake #5 being greedy Interest, attorney fees, filing fees, penalties, etc. ! You can collect in litigation, but (usually) not in the lien
  • 32.
  • 33.
  • 34. Mistake #5 being greedy Exaggerated liens are not only invalid, but they could result in sanctions, or, in worse case scenarios, criminal charges.
  • 35. Mistake Review 1. 2. 3. 4. 5. You’re probably wrong Details, details, details Legal descriptions Do you have a right? Don’t be greedy
  • 36. Learn More About This Problem • 2 Emails Per Week For 6 Weeks ! • Credit & Collection Policy Tips ! • How Successful Credit Professionals Increase Revenue And Decrease Risk Free!