How to Avoid a Mechanics’ Lien on Your Home Remodeling Project

On a smaller remodeling project chances are that you’ll be working with one contractor or handyman. But on larger jobs you might end up hiring a general contractor.

General contractors are used quite often on commercial jobs and by subdivision developers. They make the entire construction project easy to manage because they pull permits, coordinate subcontractors, and handle all the payroll.

In short, they take the headache out of the work. Think of them as job babysitters.

But when you get a sour apple and they cash your check and fail to pay the subs, you might find yourself with a lap full of mechanics’ liens. This means you’ll have to pay them again to get them off your back. Ouch!

There are things you can do to avoid mechanics’ liens.

Get a detailed contract and file a “Waiver and Release” form.
Check out the contractor’s business history with the BBB.
Ask for references on the last 10 jobs completed. A denial of this request is a red flag.
And of course, pay your bills on time, according to the contract schedule and after building permit inspections.

A lien against your property is serious business. It you have one on the books, you might not be able to sell your home until it’s satisfied. Not that you could do that in the current Obama real estate nightmare.

I’ve been in the situation of almost filing a lien myself while operating a small construction and remodeling company. But I didn’t. Instead I made a pest or myself to the general contractor until he paid me. It was more fun, I must confess.

No, I wasn’t really going to break his kneecaps. OK, not both of them