For one of our jobs, there are two documents "queued up" for us to send. One is a mechanics lien and the other is a lien/bond claim. What is the difference and should we file both?
2 replies
Sep 3, 2021
In Pennsylvania, there are the same thing as it relates to payment for work done on a construction project. The terminology can differ depending on who you talk to and where it is in the process. The first step is to file the mechanic's lien claim against the property. You then would have to file a complaint to enforce that lien - unless the owner paid the lien when the lien was filed to settle up - in order to get paid on the lien claim. Feel free to give me a call if this did not answer your question or if you would like to discuss it further. 484-531-1701.
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Sep 7, 2021
A mechanics' lien and a lien/bond claim are different. If I am understanding what you are saying, it appears that their is a payment bond in place for the Project. The difference between a mechanics' lien and a bond claim is significant. A mechanics' lien is a claim against the property, which requires you to be paid if the property is sold by the owner or allows you to foreclose on the lien and property is the claim is not paid or the property is not sold.
A payment bond operates like an insurance policy. It is a way that the owner can assure that a GC pays is subcontractors and material suppliers. The bond is secured through a Surety or Bond Company who guarantees or promises to pay the GC's subcontractors and suppliers if a GC does not pay.
You absolutely should file bond a mechanics' lien and make a bond claim if that option is available.