3 Things You Can Do to Ensure Timely Payment for Services

As a contractor, you work hard on construction sites. Unfortunately, you may have to work equally hard to collect payment. Some project owners ignore invoices, dispute them in the hope of getting a better deal, or claim that they can’t pay until their own financial situation improves. Whatever the reason, you did the work and now they’re reaping the benefits while your invoice goes unpaid. It’s a frustrating Read More

What Happens When a Lien Expires?

Mechanic’s liens can be highly effective enforcement tools. If you aren’t paid for your work on a construction project, you file a notice in the county records and create a lien on the property. In the short term, this claim can prevent the owner from selling the property or using it for loan collateral, which may create enough of a problem for them to pay what they owe. In the long term, it allows you to collect Read More

Understanding Your Rights When a Customer Doesn’t Pay

You rely on invoice payments to stay in business, so when a customer doesn’t pay for services or supplies that you provided, it impacts your ability to meet operating expenses. With your livelihood on the line, you have every right to pursue payment. According to the Construction Financial Management Association, the average profit margin for a general contractor is 5-7% annually. This means that you need $300,000 Read More

Filing a Lien? Avoid These Mistakes!

New York law allows certain construction professionals to file a mechanic’s lien on a property when the owner fails to pay them for goods or services provided during its construction. Liens cloud the title to a property, preventing the owner from selling or refinancing it, which is why they are such a powerful collection method. If filing a lien doesn't produce the required payment, the affected party can foreclose Read More

A Brief Overview of the Miller Act

The Miller Act is a payment bond statute that regulates all federal construction projects and the payments made on them. It requires general contractors to provide a payment bond on public works project or improvement contracts valued at over $100,000. This bond guarantees payment for services and materials provided by subcontractors and suppliers. If the construction project is valued at an amount between $25,000 Read More

3 Signs It’s Time to File a Lien

If you’re a New York contractor, subcontractor, or supplier, there will be times when you encounter a non-paying client. That party may have: Exceeded their budget Abandoned the project, or - Deliberately decided to withhold payment in favor of negotiating a steep discount. Whatever the reason, you are entitled to be paid in full for the labor or materials you contributed to a New York construction Read More

How to Enforce a Lien

When you’re a contractor or subcontractor in New York and a property owner doesn’t pay your invoice after all work is complete, filing a mechanic’s lien is a collection measure that normally gets results. A clouded property title can cause so many complications for the owner that the payment issue is often resolved without further action on your part. Remember, “often” isn’t the same as “always.” In some cases, Read More

The 9 Elements of a Valid Claim of Lien

Contractors, subcontractors, and suppliers who work in the New York construction industry often have to deal with the frustration of slow-paying and even non-paying clients. This is why the law allows you to file a mechanic’s lien against the property: if the owner doesn’t pay your bill, you can foreclose on the lien and collect the amount you are owed from the sale proceeds. In New York, this process begins when Read More

What is a Mechanics’ Lien?

A mechanic’s lien is a security interest in the title of a property. If you are a general contractor, subcontractor, or supplier who has worked on or supplied materials for a New York construction project and you have not been paid, a mechanic’s lien protects your right to payment. If the property owner does not pay your invoice after the lien is filed, the property can be sold and the proceeds used to satisfy your Read More

Public vs. Private Projects: What’s the Difference When It Comes to Liens?

If you are a general contractor, subcontractor, or supplier who provides goods or services to a New York construction project, a mechanic’s lien protects your ability to get paid. However, the laws and procedures vary depending on whether the project is a public or private one.   Private Projects If your invoice for a private project goes unpaid, New York law allows you to file a mechanic’s lien on the Read More