Promises To Pay Mean Squat To Your Lien Deadlines

Promises To Pay Mean Squat To Your Lien DeadlinesOwed money on a construction project, but weary about filing a mechanics lien because the owner or contractor is promising to pay?

Well, as the promise to pay “tomorrow,” turns into “Friday,” and turns into “next week,” the time period available for you to file a mechanics lien continues to tick. And in some instances, the time periods can be quite short.

It’s very important for contractors and suppliers to realize that these promises to pay do not extend the lien period. You only have one shot to file your mechanic lien, and once the window closes, it will never re-open.

So, while a promise to make a payment is a significant comfort (it’s better than an outright refusal to pay), a business should be weary about relying on this promise and foregoing its right to lien. The lien protections will disappear…and your client’s promises? Who knows.

, ,