A construction lien, also referred to as a mechanic’s lien, is a judgment against a property due to non-payment and filed through the court system by a general contractor, subcontractor, or vendor that provides materials or labor for a property. A construction lien can be filed against privately owned commercial, residential or industrial projects. Once the lien documents are in effect, the property title is not apparent until a release of lien is filed to ensure that payment has been issued. A construction lien can prevent a property from being sold or financed. It serves as public notice that the creditor has a monetary judgment against the debtor.
A property owner needs to have a lien waiver from contractors, subcontractors, or vendors who have done work on a property or provided materials to ensure that a lien is not filed. To be eligible to file a construction lien, there must be a legally binding contract describing the scope of work, the materials to be supplied, and the payment amount and schedule. In extreme circumstances, enforcement action can result in the foreclosure of a property, if the debts are not paid.
For publicly owned properties, such as state or municipal projects, surety bonds are required to ensure that construction projects are completed according to the contract terms, and everyone is paid. A Florida surety bond is administered by a third-party company that guarantees that a contract’s obligations will be completed. A claim on a surety bond protects a company against losses, although it covers only the amount of the bond, which may not be paid in full. In the State of Florida, some specific requirements and deadlines must be met to successfully file a bond claim or for a construction lien to be awarded compensation or to secure an interest in a property.
We Protect our Clients’ Interests in Construction Liens and Bond Claims
At the law office of Worman & Sheffler, P.A., our attorneys have in-depth knowledge of the intricacies of construction law and will protect your interests in construction liens and bond claims. Mr. Worman has assisted with drafting significant construction lien and bond legislation and is a well-known lecturer and contributing author on Florida’s construction liens and bond laws.
At Worman & Sheffler, P.A., we successfully file and enforce construction liens and bond claims through the judicial system by engaging in litigation for payment or force of property sale. We remain current on statutory requirements for required written notices and deadlines necessary for effective lien and bond resolutions. Our office is located in Winter Park, Florida, and we serve clients throughout the State of Florida. Contact us at 407-843-5353 or 888-279-3811(toll-free.)