As the economy continues to recover from the global coronavirus pandemic, property managers and contractors must find ways to ensure they fulfill their contracts and receive payment for their work. While contractors may once have been paid easily and on time after a project, current financial situations complicate payments for construction workers. Construction lien claims are legal tools used to ensure contractors and subcontractors are properly compensated for the work they complete on a project, but the complexity of the Covid-19 pandemic makes this more difficult. Read below to learn more and discover how the Dallas law firm Ritter Spencer helps individuals or businesses file a construction lien claim.
What is a construction lien claim?
A construction lien is a claim made against a property by a contractor or a subcontractor when they have not been paid for their services. This legal tool exists to ensure construction workers receive compensation after they complete a project. The precise requirements of construction lien claims differ from state to state, so contractors who file a claim should work with an experienced attorney in the state where the project was completed. In many cases, a properly filed construction lien stays with the property regardless of who owns it, and the lien can prevent a property owner from selling the property or borrowing money against that asset until the claim is resolved.
How has the coronavirus affected construction lien claims?
Even throughout the worst months of the coronavirus pandemic, many construction projects continued with social distancing and other protective measures in place. Despite the ability of these projects to continue without too much delay, the widespread effects of the pandemic have made it more difficult to ensure construction workers receive payment for their labor. Specifically, the global spread of Covid-19 has significantly affected the filing process. Serving a construction lien claim may not be easily accomplished in a timely manner due to continuing delays in court systems and delays in regular and certified mail. While increased patience is a necessity during these challenging times, construction lien claims remain a useful tool for contractors to protect themselves.
Filing a construction lien claim in Texas
Texas has a notably complicated set of lien laws, which makes it essential that contractors have experience filing liens or work with a knowledgeable Texas business lawyer to file their claim. When filing a construction lien claim in Texas, contractors may be able to e-file, or they may need their attorney to file with the county clerk relevant to the location of the property in question. To avoid multiple refiling fees due to incorrectly filed lien claims, contractors should work with a legal team that can verify their claim and file it correctly and on time.
While construction liens are notoriously confusing, the Dallas law firm Ritter Spencer PLLC can help ensure compensation for contractors. Our team of Texas business lawyers has experience navigating commercial litigation and business disputes to the benefit of our clients. If you need to file a construction lien claim or have questions about commercial litigation, contact our team today.