A Brief Overview Of Mechanic’s Lien – A Leverage Tool For Contractors To Get Paid
A mechanic’s lien can become quite complicated in practice in spite of the fact that it is rather simple in concept. In fact, a mechanic’s lien will provide the assurance of payment to the Individuals who are performing the actual work on a particular job. This is essential since the majority of the construction companies will perform the project based on the agreement that they will receive payment once the job is accomplished.
Sometimes the organizations in Florida for whom the job is being performed are unable to pay and in such situations, the need for a mechanic’s lien arises. These organizations are required to undergo a liquidation process and the mechanic’s lien will make sure that the qualifying individuals and groups are going to be paid out at first before the others. In this way, the construction companies will not face any risk of non-payment which will enable them to undertake any project with confidence.
Mechanic’s lien is not applicable for the motor mechanics:
There is a certain misconception regarding mechanic’s lien and it is that the motor mechanics will be able to take possession of any vehicle that they have repaired in case they have not received any payment within a specific period of time. This particular concept which is actually referred to as an artisan’s lien is not concerned with mechanic’s lien.
Whom is a mechanic’s lien meant for?
As a matter of fact, many groups of individuals will be able to qualify for a mechanic’s lien in Florida. Below we have mentioned several individuals who will be covered by a mechanic’s lien:
Architects – The civil engineers and architects who have completed any project.
Laborers – It includes those individuals who are laboring on a site job. This consists of electricians, carpenters, plumbers, laborers, HVAC contractors and so forth.
Lumber yards – The lumber yards, being one of the primary sub-contracted groups who is involved in the majority of the construction jobs, will also qualify for a mechanic’s lien.
Duration of the mechanic’s lien:
Usually, a mechanic’s lien is going to be effective till the individuals who are protected by it will be paid in full. In most cases, this will happen as soon as the construction project is finished; however, depending on the situation, it might also extend further.
Enforcing the mechanic’s lien:
It is possible to enforce a mechanic’s lien in Florida in case an individual has performed all the required work for a construction project and has not received any payment. A preliminary notice also referred to as a notice to owner Florida can be sent by the person in such cases. However, one must act quickly since the companies which have not made the payment sometimes have different creditors who are attempting to get as much out of them as possible.