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How can I make sure I get paid after doing construction work?

On Behalf of | Sep 17, 2020 | Real Estate

There are many people in the Indianapolis area who make their living in building or renovating homes and businesses.

Of course, they expect to get paid for their work once it is complete, either by the owner of the property or, in some cases, a general contractor.

Unfortunately, there are a number of reasons why people might fail to pay for the construction work they received, which could leave a plumber, electrician, carpenter or other person who works in a skilled trade holding the bag.

A skilled laborer should consider filing a mechanic’s lien

One way a skilled labor can get payment, or at least bring the other side to the negotiation table, is to file a mechanic’s lien.

Basically, a mechanic’s lien is a formal document that anyone who improves a piece of real estate, whether by new construction, repairs or renovations, can file against the property.

Assuming the lien is properly and timely filed and valid, it gives the skilled laborer the option to force the sale of the property in a foreclosure so the person can collect the money she earned for parts and labor.

As a word of warning, though, the law governing mechanic’s liens is complicated and has many strict deadlines and other requirements. Not following any one of these requirements could make it impossible to foreclose on the lien and collect on a construction debt.

Other legal options may also be available for collecting payment

Even if a business did not have a mechanic’s lien, it may have other legal options for recovering payment. For example, the business may be able to take its customer to court through a breach of contract case.

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