In an article published on Jan. 13, 2017 by Construction Executive Risk Management, Simon Bloom and Brandon Arnold discuss the importance of a lien, and its considerable power to a subcontractor to seek payment from an owner through the property itself for a debt owed to the subcontractor by a general contractor or other third party. The article details the different ways to reduce and even eliminate the risk of a subcontractor or materials provider from filing a claim of lien.

Bloom and Arnold emphasize, “Considering these minimal expenses against the potentially staggering costs of lien litigation, property owners and general contractors should implement a Notice of Commencement, [an additional time-sensitive requirement on any subcontractor who lacks contractual privity with the general contractor and seeks to file a claim of lien] on every construction project regardless of size.”

For the full article, you may click here.