Is a mechanic’s lien the only option if a client won’t pay?

Is a mechanic’s lien the only option if a client won’t pay?

| Oct 23, 2020 | Construction Law |

One major question that clients may have when signing a contract is why there is a clause referring to mechanic’s liens. You may include information on a mechanic’s lien in your contract so that your clients know that you’re willing to use a lien if they do not pay for your services.

These liens are allowed because you deserve to be paid for your work. If they are benefitting from the work you’ve done on their property, then they should be accommodating you by paying you fairly.

Is a mechanic’s lien the only option if a client won’t pay?

A mechanic’s lien is not necessarily the only option you have if a client won’t pay. You have a contract, so there is the potential to take them through collections, to pursue compensation in court or to use other forms of liens on their property. Sometimes, clients find that the amount they owe is more than they can pay at one time. If you’re feeling generous, you could allow them to pay in installments over time.

If you don’t want to deal with those other options, then the mechanic’s lien may be right for you. You then give the client notice that you’ll be filing the lien and have between two and six months to work out a solution or file a lawsuit to get compensated.

Mechanic’s liens are there to help you get paid instead of missing out on compensation when clients try to avoid paying what they owe. Your attorney can help you take a look at other options if you don’t think that a mechanic’s lien will be the right solution in your case.