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Construction Liens
by Calin A. Lawrynowicz for “Construction
Spinoff," website article
Fall/Winter 2000
1. What is a construction lien?
2. How does one obtain a construction lien?
3. Preservation, Perfection and Time Limits?
1. What is a construction lien?
A construction lien is legal creation meant to protect
construction professionals. It is almost like a special
insurance policy for payment. Any party who provides
goods or services that 'attach' to a building or property
may qualify to register a lien for the value of the
goods and services. A valid lien may be the only device
that makes certain you obtain payment.
2. How does one obtain a construction lien?
A construction lien is legal creation
meant to protect construction professionals. It is almost
like a special insurance policy for payment. Any party
who provides goods or services that 'attach' to a building
or property may qualify to register a lien for the value
of the goods and services. A valid lien may be the only
device that makes certain you obtain payment.
3. Preservation, Perfection and Time Limits?
There are strict time limits in which
liens must be preserved and perfected. Preservation,
the first step, involves the registration of the lien
at the correct registry office. Perfection, the second
step, involves commencing a legal action on the lien.
The time limitations are vital, but not always straightforward.
A qualified professional should generally be consulted
to determine when the clock started ticking and when
the steps need to be completed. As a general guide,
preservation and perfection must be completed in 45
and 90 days respectively from a key date such as last
supply of services. Please consult a professional as
timing is critical.
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