Payment bonds are meant to be for the benefit of subcontractors and suppliers, generally speaking. Bonds are piles of money put up by the general contractor or owner of a property. Subcontractors and suppliers may submit claims against the pile of money for lack of payment. This process avoids hold…Read More
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Many lien claimants are worried about a lien claim being “bonded off”. This is usually because parties don’t understand how bonding-off a mechanics lien works and, as a result, fears it, or fears the “loss” of their mechanics lien security. The substitution of the bond for the interest in the property…Read More
Mechanics liens are powerful tools to get parties in the construction industry paid. While there are several steps that parties on the top of the payment chain have to challenge the mechanics lien, or otherwise get the lien removed from the property, some of these steps may actually benefit the…Read More
Bonding companies do not like mechanics liens. As a matter of fact, most bonding companies will have contractors answer directly to them once a lien is filed. It gives them unwanted exposure, so these bonding companies will immediately put pressure on the contractor to get the issue resolved and get…Read More
The process of releasing a Texas mechanic lien, like everything else under Texas mechanics lien law, is unique. Unlike many other states, the Texas statutes present comprehensive guidelines as to who may release a mechanics lien claim, and how. Because a Texas lien may be released by anyone with interest in the…Read More
The purpose of this article is to clarify what a lien release bond is and how it works.
Lien Release Bonds Generally
The typical scenario impacting contractors is one where your company, as a subcontractor, is not paid on time by the general contractor. If you are within 90 days of your…
A mechanics lien is an extremely powerful tool unpaid contractors and subcontractors can use to get paid. One of the ways in which a mechanics lien affects a property is that it can “cloud” the property’s title. In layman’s terms, a property with clouded title becomes extremely unattractive to potential buyers or…Read More
Last week, ENR.com published an article about legal problems mounting for The Aspire Group of Ohio, a prime contractor selected to head a $12.5 million renovation project at the Dayton VA Medical Center. The prime contractor is having serious legal problems, accused of not paying subcontractors and even for bribing a federal official….Read More
Some people get confused about the differences between a bond claim and a mechanics lien claim, and this can result in causing decision paralysis. As this post will explain, however, the question of “which should you file” is usually a trick question. On most occasions, you only have the opportunity to file…Read More
We’ve talked about the mechanics lien document for years here on the Construction Payment Blog. Check out the tag “Mechanics Lien,” or check out our post by the same name from last year: What Is A Mechanics Lien?
The definition of a mechanics lien is simple. Hell, just go to…Read More