One government organization is especially vulnerable in 2013 if the fiscal cliff talks don’t fall its way, and the organization is critical to mechanics lien and bond claim compliance:  The US Postal Service.  A recent CNN article titled “Goodbye, Postal Service?” asks whether this Christmas “could be the last for the U.S. Postal Service.”

The reality is that the post office is losing tons of money.  According to the CNN article, the organization is losing $25 million per day and “staring down insolvency.”  If nothing is done to cut spending or free up additional funds for the service, there is little hope that the organization can sustain itself over the next year. It’s just a practical impossibility.

What does that mean?

In the mechanics lien and bond claim context this could mean a lot. The laws across the United States rely on the U.S. Postal Service to delivery compliance notices through certified mail or certified mail return receipt.  In most instances, the law does not allow an alternative delivery method.

If the U.S. Postal Service folded, it would leave millions of potential claimants in the dark about what to do to preserve their mechanics lien and bond claim rights.

Granted, this is a far-fetched scenario, as the US Government clearly cannot let the doors close on the postal service. The mechanics lien and bond claim compliance notification is just the tip of the iceberg.  Nevertheless, money is a real problem for the post office, and while closing the doors seems unlikely, cuts in the delivery schedule, delivery speeds and services are likely.  This could also have far-reaching implications on the construction industry who rely on the USPS to meet lien compliance requirements.

We discussed a potential problem with slower delivery services (which has already started with USPS deliveries) in a previous post: Preliminary Notice Deadlines May Be Impacted By Slower First Class Mail Delivery.