I was checking out a blog on my right side links titled Construction Law Monitor and found an excellent series on Mechanic’s Liens. Before your eyes roll back in your head, I think you need to consider the times. The tight economy moves many firms into the category of potential problems.

Whether not getting paid or the job getting half done and the firm defaulting, you are probably going to be dealing with some financial shenanigans in the next few months. In most states, the Mechanic’s Lien will be the most important tool in dealing with the issues.

Mechanic’s Liens developed to protect tradesmen from unscrupulous property owners. As an example, if a property owner has a tradesmen install a new bathroom, then decides not to pay him, the tradesmen’s only real option is to bring a civil lawsuit. Since the property owner may have much more money and time, the tradesmen may not have had any real opportunity to right the wrong of the unscrupulous property owner.

States developed the right to file a Mechanic’s Lien, then, to give the tradesmen (the little guy) a chance to put a claim against the property immediately. This claim causes the property owner aggravation. The claim is public, the property can’t be sold without this claim being removed and often the claim takes precedence over the first mortgage, which gets the bank’s attention.

So these powerful Mechanic’s Liens can upset the traditional balance of power. The specifics of correctly filing the Mechanic’s Lien, though, are detailed and specific. A Mechanic’s Lien incorrectly files generally means a worthless Mechanic’s Lien.

So read the blog above and acquaint yourself with some of the specific Mechanic Lien regulations in your state. There’s even a blog completely devoted to the subject titled Construction Lien Blog. No matter where you live on the food chain, you should understand the Mechanic’s Lien basics for your area. It’s going to be a more important part of construction for the next few years, unfortunately.