As the COVID-19 pandemic continues, it’s steamrolling all sorts of would-be stable businesses and taking no prisoners. The reality is that if COVID-19 hasn’t affected your construction company yet, it’s only a matter of time before you start to feel its impact. Most likely, you’ll notice jobs will be delayed and eventually canceled. But even more devastatingly, you’ll see payments screech to a halt. It may feel like you’re on an island with no financial help in sight. But filing a mechanics lien is your best bet when it comes to getting your S.O.S. answered.
COVID-19 will delay construction payments
These are uncertain times for almost all business, and construction jobs and companies are no different. Construction payment delays are going to be a big issue until well after we emerge on the other side of the recession. Payment on jobs you’ve already completed will begin to slow, your calendar will begin to empty, and projects will be put on hold. There’s simply less money moving around in the economy at this point, making it difficult for companies to pay anyone else.
If the property owner or GC owes you money on a project, it may be a while before you see it. Companies are starting to hold on to every penny they can until after the recession. This means if your invoice is sitting on the wrong person’s desk, it may not even get looked at until workforces are back to full strength.
Even at that point, if you haven’t shown an intent to collect on the money they owe you, you might be pushed to the back burner. Meanwhile, they’ll spend their available cash on contractors that they know won’t be pushed around.
Tracking Work Delays due to Coronavirus
Has your project stopped due to Coronavirus?
How a mechanics lien can protect you during COVID-19
It’s not a matter of if your company will be affected by COVID-19, but a matter of when. Cash is critical during a recession, and everyone is trying to hang onto it. It’s only a matter of time before even regular, reliable customers start asking for more time. Or even worse, ignoring your invoices completely.
Filing a mechanics lien not only puts you in line to get paid, but it also puts you in the right line. If a general contractor is holding back your money to safeguard his cash flow during a recession, the property owner might not even be aware. Filing a lien will let the owner know what’s going on, and they can rectify the situation and ensure your payment.
If you don’t file that lien, you may be in the back of a line of other contractors that are expecting payment but have chosen not to draw attention to it. These contractors will be the last to get paid when funds finally do become available after the issues caused by COVID-19 are resolved.
File A Mechanics Lien Now & Save $150
Don’t wait and hope that you’ll get paid when this all blows over. Get to the front of the line. For a limited time, file a mechanics lien online for just $199.
Use the code COVID19 at checkout.