This post is the third in a six-post series detailing the exact measures that you need to take to secure payment on every project – every time.
A recent article outlined a proven formula to ensure that you secure payment on every project. This relatively simple formula consists of 5 simple steps: Protect, Monitor, Warn, Secure, and Enforce.
This post focuses on the second step: Monitor.
Monitoring Deadlines Is Crucial
While mechanics liens are a very effective way to secure payment on your projects, the process to file a valid lien can be quite cumbersome. One of the main reasons for this obstacle is the need to correctly monitor all of the required notices and deadlines that come with each project. Each state has its own laws, and these laws can be very complex.
This difficulty is compounded because just a single missed deadline could mean the end of any future lien claim.
When one understands the dire consequences of failing to monitor notice and lien deadlines, as well as the nuances of the compliance needed to ensure that your deadlines are met, it becomes clear that something this important should not be left to chance.
Consider Using a Lien Management Software to Assist in Monitoring Deadlines
Deadlines are determined by a multitude of varying factors such as: the party’s role in the project, the project’s location, the project type, and possibly even whether or not a specific type of notice was filed by another party. As you can imagine, this is not a simple process. Many companies have employees, or entire departments, solely tasked with monitoring deadlines as part of the company’s comprehensive credit policy. Since the ability to secure extensions of credit is crucial to most well-drafted credit policies, keeping up with deadlines is especially important.
An alternative to that method is to use technology to monitor deadlines for you. Software has been developed that allows parties in the construction industry to monitor and preserve their lien rights with much less effort than was previously required, and to do it with much greater accuracy.
Utilizing a good lien management platform will allow you to focus on what you do best. Don’t let a minute, over-looked detail in the law be the end of your lien rights – this is one of the trickiest aspects of securing your payment, but also one of the most important.
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