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The Truth About Construction Lien Management

Getting Paid Without Worry Over Paperwork and the Legal Mumbo-jumbo

Until a tradesman or supplier is paid for their contribution to the improvement of a property, they are a creditor. They front the labor and materials for a project until completion. Just like the lender who is funding the project, contractors and suppliers must communicate their expectations to get paid. The truth about construction lien management is that you should be paid for the work you have completed, and not have to worry about paperwork and the legal mumbo-jumbo. Perfekt Inc. has created a systematic approach for communicating expectations on each and every project that will yield significant improvements in timely cash flows, reduce the need to file construction (mechanics’) liens, and improve results when a lien is necessary.

The truth about construction lien management is that a proactive and systemized process, communicating expectations for timely payment, will reduce the need for filing liens against properties. In spite of this fact, most contractors manage their lien rights by doing nothing, ultimately giving up their lien rights. Giving up lien rights as a contractor or supplier for a project is like asking the lender to relinquish the mortgage against the property. The difference between a plumber and a lender is that a plumber knows how to sweat a joint, while a lender knows how to manage credit. What they have in common is that they are both creditors on the same project, and giving up their rights to get paid is neither expected nor necessary for either the lender or the contractor.

Those contractors and suppliers who attempt to manage their lien rights often use the lien law statutes and timelines as the default criteria. This is a reactive and defensive posture where they hope to get paid, waiting until the last moment to take action. Managing lien rights in this manner is less effective and more costly than managing lien rights in a proactive way. Effective management of construction liens must begin at the start of every project, not at the end of a few.

When Perfekt manages the process for a client in a proactive way, with emphasis on transparent communication, we begin to see the Truth About Construction Lien Management:

  • Get paid better and faster for contributions to the improvement of a property, with less worry about getting paid.
  • Reduce the need to file liens, ultimately not clouding titles or tarnishing relationships.
  • Perfekt’s simple standardized process can be followed every time to improve the flow of construction funds
  • Perfekt ultimately removes the need for our clients to know the ins and outs of the lien law.

Using Perfekt as a lien management service provider is a best management practice for trade contractors and suppliers. At Perfekt, we have standardized a proactive proven process designed to improve the flow of construction funds for our clients. This process helps with communications and relations between all parties involved, including the general contractor and homeowners. Perfekt’s process is backed by the Company’s 23+ years of experience in construction (mechanics’) lien management. Our online tools are easy-to-use, and our service exceeds expectations. Together we can build a strong construction industry founded on the principles of free enterprise and the development of real estate.

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