5 Critical NY Lien Services Construction Companies Should Know About

By Mary Howard


All companies, including the construction companies, have the right to run their businesses successfully. However, sometimes, the contractors may not be paid for their work. Also, the suppliers may not be paid after providing these companies with materials. The companies may also pay these stakeholders but fail to get their work does. Hence, the only way to get compensated is filing claims. These claims are essential because they ensure that everyone has been served accordingly. Five main forms of NY Lien Services are provided to construction companies. Below is a list of these liens.

All construction projects are important, from the biggest to the smallest one. Therefore, the processes, procedures, and protocols that these companies go through are the same. The paperwork involved should be current and organized. Also, all parties involved, including contractors and suppliers, should be paid in time. Thus, many providers offer lien services to make sure that all stakeholders are protected.

This form of assistance or service is usually divided into five common parts. All five parts are important in the construction industry. Hence, suppliers, contractors, and project owners must be aware of all of them and their roles. When all the parties are aware of this, they will know the kind of service they will ask for if need be.

The first service is called the preliminary notice. This is specifically meant for the property owner. This notice is served to property owners as a notification or reminder that a contractor or supplier is ready to provide a particular form of help or assistance. This includes labor, materials, and equipment to improve or remodel an existing property of the property owner.

The second category of these notices is called the mechanic service. This is designed for both real property and personal property. Its names are different. Hence, the name it will be given will depend on the kind of property. The notice is typically placed on titles of properties. It indicates that the individual is financially interested in the property. Hence, the claim on the property should be released. This service is also critical for enforcing payment.

Suppliers and contractors working on a particular company can also issue a stop notice. This notice indicates that the contractor has completed his work. Also, it indicates that the supplier has provided certain materials. The cost of the entire project is also indicated. The stakeholders also indicate what has been paid for and what has not been paid for.

A bonded stop notice is the fourth service. This is meant to benefit the general contractor or the property owner. This notice may look like a regular stop notice. However, the difference is that it is given with a bond of about 125 percent of the claim. This notice ensures that the original contractor or owner have been covered if damages occur.

Miller act notices are usually provided to protect federal projects. These projects are federally funded. Hence, any contractor or supplier that may not have received payment can file the claim. When the claim is filed, these workers receive the entire amount they are claiming for.




About the Author: