Liens are mainly associated with suppliers and subcontractors. In case, general contractor you had hired to remodel your building does not pay suppliers, court may order lien to be placed on building until money is recovered. It does not matter whether you paid contractor or not. Suppliers and subcontractors are given chance by the law to seek payment from you in case general contractor is unable to pay. This makes it necessary for you to understand Mechanics Lien NY before hiring contractors.
Liens were introduced with intention of enhancing discipline in construction industry. Since people started applying them, undisciplined contractors have been eliminated out of construction industry. This is because those who have history of not paying subcontractors fail to have customers, hence collapsing. On the other hand, items of some of general contractors who fail to pay customers are sold, hence collapsing.
To apply mechanic lien successfully, subcontractors are not only supposed to be knowledgeable, but also patient. They need to follow procedure carefully and strictly failure to which their chances of being successful are minimal. Contractors must have documents to prove that indeed, they were not paid. Other information they must have includes; contract amount, project location, work done and project type. Subcontractors may not be successful unless they follow procedure discussed below.
During commencement of project, supplier ought to let homeowner know items being supplied. This ought to be done within the first month of supply. If supplier is not paid by contractor he or she should consider letting the homeowner know the condition. In case, solution of issue is not arrived at, after six months, supplier many think of filing a case seeking payment. Suppliers ought to observe time failure to which it will be quite challenging to sell a property. As a home owner consider doing the following in order to shield yourself from these difficulties.
Before hiring a contractor you need to comprehend what is contained in mechanics lien. Knowledge acquired will enable you come up with workable strategies, which will shield you from challenges that arise when contractors fail to meet demands of supplies. Consider coming up with a way in which checks issued to general contractors are cashed after endorsement by suppliers. This is one of the best methods you can use.
You can also decide to pay subcontractors directly. This formula is normally applied when dealing with dishonest contractors. This means that you will have to pay contractors less amount. This is because you will have to deduct amount issued to subcontractors. This method is rarely used owing to its complexity. You will have to follow long process. By using this method you will appear as employer of both subcontractors and contractors.
Another method of evading liens is by choosing to work with general contractors, who have acquired lien waivers from service providers they are supposed to pay. For this case, homeowner should instruct contractor to provide waiver immediately after payment for a given service, before further payment is made.
Proper preservation of documents concerning subcontractors, general contractors and even suppliers are beneficial. These documents tend to confirm that a certain transaction took place. Such documents are useful during court proceedings because they are used as evidence. Keeping such documents safely is beneficial.
Liens were introduced with intention of enhancing discipline in construction industry. Since people started applying them, undisciplined contractors have been eliminated out of construction industry. This is because those who have history of not paying subcontractors fail to have customers, hence collapsing. On the other hand, items of some of general contractors who fail to pay customers are sold, hence collapsing.
To apply mechanic lien successfully, subcontractors are not only supposed to be knowledgeable, but also patient. They need to follow procedure carefully and strictly failure to which their chances of being successful are minimal. Contractors must have documents to prove that indeed, they were not paid. Other information they must have includes; contract amount, project location, work done and project type. Subcontractors may not be successful unless they follow procedure discussed below.
During commencement of project, supplier ought to let homeowner know items being supplied. This ought to be done within the first month of supply. If supplier is not paid by contractor he or she should consider letting the homeowner know the condition. In case, solution of issue is not arrived at, after six months, supplier many think of filing a case seeking payment. Suppliers ought to observe time failure to which it will be quite challenging to sell a property. As a home owner consider doing the following in order to shield yourself from these difficulties.
Before hiring a contractor you need to comprehend what is contained in mechanics lien. Knowledge acquired will enable you come up with workable strategies, which will shield you from challenges that arise when contractors fail to meet demands of supplies. Consider coming up with a way in which checks issued to general contractors are cashed after endorsement by suppliers. This is one of the best methods you can use.
You can also decide to pay subcontractors directly. This formula is normally applied when dealing with dishonest contractors. This means that you will have to pay contractors less amount. This is because you will have to deduct amount issued to subcontractors. This method is rarely used owing to its complexity. You will have to follow long process. By using this method you will appear as employer of both subcontractors and contractors.
Another method of evading liens is by choosing to work with general contractors, who have acquired lien waivers from service providers they are supposed to pay. For this case, homeowner should instruct contractor to provide waiver immediately after payment for a given service, before further payment is made.
Proper preservation of documents concerning subcontractors, general contractors and even suppliers are beneficial. These documents tend to confirm that a certain transaction took place. Such documents are useful during court proceedings because they are used as evidence. Keeping such documents safely is beneficial.
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