Recently, I have been involved in more than a few matters where a party failed to preserve their construction lien rights or payment bond rights, as applicable to the project. Why? Failing to properly preserve lien or payment bond rights is avoidable. Instead of a party hiring a construction attorney or devoting the resources to lien or payment bond right-preservation, they delegate this issue in-house or are not knowledgable regarding deadlines. By failing to preserve lien or payment bond rights, as the case may be, a party is severely losing potential leverage to maximize collection. What if the party was hired by an entity that has a collectibility concern? What if there is a pay-if-paid provision in the contract? These questions can be minimized by preserving rights against a lien or payment bond where the debt is collateralized by the real property (e.g., lien) or a surety (e.g., payment bond). Lien and payment bond right preservation is a MUST! Don’t put your self in a position where you wait until it is too late to understand how to preserve your lien or payment bond rights only to find out you are out of luck! Because you will be out of luck!
Please contact David Adelstein at firstname.lastname@example.org or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.