Documents have certain requirements that are necessary for recording. Outside of these requirements, the county recorder generally should NOT reject a document for recording based on their interpretation of the information on the document. The reality though is that it happens all the time.

Any attempt to preemptively limit the right to file mechanics liens becomes a battle between the right of freedom of contract on one side, and centuries old public policy on the other. How that battle shakes out can depend on many different factors.

Many construction companies occupy both sides of the credit fence. That is, they both extend credit to other parties on the project, and provide labor and/or materials on credit themselves.

Preliminary notices were originally developed for the benefit of property owners and upper-tier participants in order to provide visibility into the project and bring some of the potentially hidden project participants to light.

Sending notices is simply more professional and shows to other project stakeholders that you’re running a tight ship, and that when it comes to securing your payments, you know what you’re doing, and you mean business.

Despite the potentially higher initial costs, and the issues surrounding mechanics liens, Alternative Dispute Resolution (ADR) can be useful in getting construction disputes handled efficiently.

Even long-time industry folks with years of experience can have inaccurate perceptions or mistakenly held notions concerning what lien rights management is all about.

If you were given a legal property description and a driving map, you’d probably have a very difficult time finding the property. This is because LPDs typically speak in the language of county recorder offices, and not in the common directional parlance of everyday life.

Come with your construction law questions in hand every Thursday between 10am and 11am CT for our “Ask Nate Anything” Q&A. He’ll be providing answers to your most pressing construction law questions. Need clarity on lien rights, requirements & deadlines, or getting paid on a construction project specific to your state or nationwide? Now you’ll get answers.

As a fellow accountant, let me be the first to say, lien rights management is not easy to grasp. 

Pay apps – like many things in the construction industry – take a relatively simple concept, and add layers of complexity. By familiarizing yourself with the common forms and requirements, you can position yourself to make your business more efficient and get paid faster.

After talking to many of our customers, we’ve understood the pains felt by office managers who are often wearing many hats and juggling all of the responsibilities that come with running a small-to-medium business.