We here at the Lien blog devote a lot of our time to writing about mechanics liens, and all the issues and laws surrounding them in each and every state. Another major area of interest, however, is the Miller Act, a piece of federal legislation which permits unpaid subcontractors and material suppliers on federal government [...]
Common Mistakes ArticlesRSS feed for this section
Credit Policy Mistakes: Stick to the Policy As Exceptions Can Be Costly
Here on the Lien Blog, we discuss good credit policy often because it is so integral to making profits in the construction industry. Lets face it, we are all in business to make profits. This post discusses what happens when a good policy is in place, but not strictly followed. In doing my research on [...]
California Preliminary Notice: Should I Add 20% To The Estimated Contract Value?
Short Answer: No. Long Answer: This is a question we get a lot related to the California and Arizona preliminary notice requirements. Unfortunately, however, it’s all related to a misunderstanding of the “20% Rule.” The first misunderstanding is that the rule applies to California and Arizona (it only applies in Arizona). The second misunderstanding is [...]
Texas Mechanics Lien Law: What is “Substantial Compliance”?
Some states spell out exactly what kind of language must be contained in a valid mechanics lien. These states may even provide templates in their statutes that unpaid contractors and subcontractors can use in a mechanics lien. Other states, such as Texas, lay out the general requirements a valid mechanics lien affidavit must follow, and [...]
California Mechanics Lien: 5 Biggest Mistakes You Can Make
The California mechanics lien laws are the same as every other state, in that they are complicated and leave a lot of room for mistake. In the mechanics lien universe, one small mistake can invalidate your entire claim. Therefore, pay very close attention to this article, which outlines the five most common (and tragic) mistakes [...]
Joint Check Agreements: 3 Fatal Mistakes You Can Make
Getting a joint check agreement is a plus for any credit department, and I highly recommend utilizing the joint check remedy when it’s available. Don’t make the mistake, however, of thinking that joint check agreements are a one-size-fits-all type of document. To the contrary, there are lots of traps and mistakes to be made. This post discusses [...]
Service Mistakes Are Common When Filing A Pennsylvania Mechanics Lien
Jerry Geiger at Newman Williams published a blog last week titled “Pennsylvania Mechanic’s Lien Missteps.” The article focused on a common mistake made by lien claimants in Pennsylvania; best summarized by Geiger with this sentence: In each case [that Geiger handled to remove invalid mechanic liens in Pennsylvania] …the claimant assumed the affidavit of service [...]
3 Ways To Get Burned Filing Your Own Mechanics Lien
No one goes to medical school to learn how to file a mechanic’s lien. It isn’t brain surgery. Claimants must be careful, however, because mechanic lien laws are hyper-technical and there are many traps for the inexperienced and the do-it-yourselfers. In fact, as an example of one of these traps, we previously wrote a post [...]
Connecticut Court Forgives Small Error In Mechanics Lien
Mechanics lien statutes are complex and technical, and they get mixed treatment by courts across the country with some courts very strictly construing and others very liberally construing the statutory requirements. It’s because of these varied restrictions that filing a mechanics lien can be a treacherous affair, and folks are at risk to make common mistakes [...]
Does One Mechanics Lien Protect Everyone On The Project?
Believe this: When a contractor runs out of cash and has his back against the wall on a project, he will say just about anything to prevent others from filing a mechanics lien. [pullquote style="right" quote="dark"]Whatever the contractor’s problems are on the project, they are not your problems[/pullquote] Why? Because anyone who files a mechanics [...]
Mechanics Lien Rumors Are Not Mechanics Lien Laws
Granted, mechanics lien laws are complex. It’s still surprising to me how many folks out there think they know everything about the lien laws when they in fact know little to nothing at all. This is a huge problem in the marketplace. Many companies rely on these misconceptions to their detriment, and wind up with defunct [...]
Columnists
Scott Wolfe Jr., JD
CEO of Zlien, and a licensed attorney in six states, he's experienced in construction & corporate credit management laws....Read More
Nate Budde, JD
Zlien's Chief Legal Mind and licensed attorney. Nate is a Stanford & Tulane Grad, a Jeopardy! alumni and more....Read More
Seth Smiley, JD
Construction attorney in California & Louisiana, Seth is an experienced construction litigator and Zlien's COO....Read More
Funding Gates
The world's first CRM for receivables management.Read More
Gretchen Lynn
Operations Genius at Zlien - She writes all the fun stuff here.Read More
Jason Bull
Zlien's Research Giant - He shares tips and info on how to confirm project, surety or construction party data.Read More
Most Viewed