Can your business request a mechanic’s lien for unpaid invoices?

Can your business request a mechanic’s lien for unpaid invoices?

On Behalf of | Sep 12, 2021 | Construction Law |

Running a construction-related business requires a lot of planning and investment. Although you can make good money, you often have to provide supplies or labor before you receive payment in full.

Unfortunately, both individual property owners and even businesses that hire you could default on their obligations once you have delivered materials or completed your work. Despite having an agreement or contract with you, they will ignore your invoices and never send the remainder of the balance owed.

Trying to collect on a debt can be a stressful and risky endeavor, especially if the other party is resistant despite having the capability to pay you. Are you possibly in a position to request a mechanic’s lien against the property?

The Arizona courts do issue mechanic’s liens for unpaid work

Provided that you have documentation about the work you performed and the payment you did not receive, you may be in a position to request a mechanic’s lien. The Arizona courts can grant you a lien against the property where you did work that will prevent the property owner from selling, transferring or even refinancing the property before they pay you in full.

Any contractor or subcontractor who has done work on a construction project may have grounds to request a mechanic’s lien. The state also issues materialman’s liens for those who provide materials for construction but do not actually do the work. While securing a lien will require that you go to court, it is one of the strongest ways to compel a non-paying client to make good on their obligations to you.

Pursuing a lien can be a good method to finally push someone to pay their outstanding invoices. Experienced legal guidance can help.