When talking about mechanic’s liens in South Dakota, many business owners are only aware of some steps, but remain unaware of all the steps that can be taken to protect against some of the possible hardships caused by mechanic’s liens. A mechanic’s lien is a legal claim made against real estate by suppliers or contractors that have not been paid for the work performed or materials supplied on a construction project. A prime example – Lien waivers. Lien waivers should be required prior to an owner releasing any final payments and/or during the project to ensure subcontractors and others were either paid or waived their lien rights. Below we will explore additional steps you can take to protect your company when it comes to mechanic’s liens.
