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A Quick Look at Mechanic’s Lien and Filing a Claim Pt 2

July 17, 2019 0 Comment Category: Construction

If you have provided the materials, the evidence for filing mechanic’s lien would be a paid bill and a proof that they were utilized for the said project. All of the equipment used during the project must be documented and presented as well.

Estimating the Value of the Construction Lien

Including the fact that the payment can be partially continued (in case the contract was terminated in the middle of the project), it is important to estimate the exact amount of money requested from the property owner. The key thing here is to provide a reasonable, true value of the expenses incurred for the materials, equipment, and labor. You cannot exceed the price; however, it would be unfair to decrease it as well.

As a professional contractor, you must know the exact sum expected from different kinds of work. All of the products that were bought specifically for the project can be included as well. Of course, you would need to have proof here also, that those things were bought not in vain but were necessary for the completion of the project. Remember that you can only evaluate the unpaid amount of money for filing a construction lien.

Why Have a Contract?

Some works can be performed on the basis of the oral agreement between two sides. Unfortunately, no matter how good and warm relationship you have with a customer, the agreement can be broken at any moment. The reasons can vary from personal to economical crisis, and there is no guarantee that the money will be paid. That is why you can never trust oral agreements and should only work under a contract. Besides, only a contract signed by both sides and stating all the necessary information will be considered as a basis to claim a mechanic’s lien.

After filing a construction lawsuit, it might be taken to the court for trial. It generally does not take much time to consider the case, be it is residential or commercial construction lien. The demand of the lien can sometimes be to get the property sold, so that the necessary amount of money could be paid from the sale proceeds. Of course, this process does not satisfy the owner, so he/she usually tries to pay the settlement amount as soon as possible. Anyway, the case of mechanic’s lien in California sees a positive outcome in the majority of cases.