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Notice of Intent to Lien: Infographic On Getting Paid In The Construction Industry

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Getting paid in the construction industry can be a form of art. There are so many challenges confronting trade contractors and suppliers when trying to get paid, not the least of which involve pay-when-paid clauses, change order disagreements, and workmanship disputes. We touched on this subject a few months ago in the post “Why Customers Don’t Pay And What To Do When It Happens.”

Clearly, the most effective weapon at getting paid in the construction industry is to protect and enforce your mechanics lien rights. However, an often overlooked tool is the “Notice of Intent To Lien.”

The notice of intent to lien is simply a demand for payment that threatens to file a mechanics lien if payment is not immediately made. While this notice is only technically required by nine states, it can be sent voluntarily in any state, and is highly effective at getting paid.  In fact, in a recent survey of these notices sent by  zlien , 47% of the debts were paid within 20 days of delivery.

That’s an astonishingly high figure considering that companies usually turn to this remedy as a last resort (so, these are tough debts) and the cost of sending the notice is so low.

Inspired by this data, we’ve put together an infographic analyzing the challenges faced by construction credit professionals when trying to get paid, the options available to those companies in getting paid, and where the notice of intent to lien remedy may fit in.  The infographic also provides you a little more data learned from our notice of intent to lien survey.

 

Notice-Of-Intent-To-Lien-Infographic-Getting-Paid-In-Construction2

Last Updated on Dec 03, 2018
Published on May 31, 2013

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A husband, dad, & entrepreneur in New Orleans, Scott founded zlien to even the $1 trillion construction playing field and make payments easier, faster, and more predictable. zlien is used by thousands of contractors and suppliers nationwide to make payments easier on billions in contract value each year. Scott is a licensed attorney who previously practiced construction law. Recognized by New Orleans City Business as an “Innovator of the Year” and part of their “Leadership in Law Hall of Fame,” Scott has been on the Silicon Bayou 100 list every year since 2014, is a winner of Idea Village & Jim Coulter’s IDEAPitch, is the ACG’s reigning Emerging Growth Company, and a Junior Achievement Rising Star.

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