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What are construction liens?

A secure contract is necessary for construction companies. This ensures that you get paid in exchange for the work you do. When a customer attempts to refuse to pay you in spite of this, it creates problems for everyone.

There are several options for you to consider as you move forward in dealing with this problem, and securing a construction lien is one of them.

Qualifications to file a lien

The North Dakota Legislative Branch discusses construction liens. First, you have to qualify in order to gain one. If you worked under contract for a person who failed to pay you, this is the main qualification. You can provide the property owner with a notice of the lien after filing for it through certified mail.

You can place a lien for the same amount of money as the agreed-upon amount listed in the contract for the work you accomplished. This includes costs of material and labor. You cannot add on additional costs beyond what the contract covers.

Handling collections

Customers could always pull out excuses for dodging the bill, even in the face of a legally binding contract. It is extremely hard to recoup losses in this situation since the bill itself usually covers material costs and labor hours, which you cannot easily take back.

Collections on court orders are up to you, which is a difficult process. But fortunately, the law is on your side, and if you know how to best utilize the tools at your disposal, it is possible to recoup your losses.