Subcontractor Squeeze

In this week’s Charlotte Observer story about tough times in the commercial construction sector, we learned that liens filed in Mecklenburg County against general contractors by their subs spiked by about 70% in the last two years.  Experts say they will continue rising.

The article sparked a lively discussion in the “comments” section online.

What’s a sub to do?

Before you let the lack of cash flow drive you to close your business, consult with an attorney about your options.  If filing a mechanic’s lien makes sense in your situation, the lien will attach to the property and structures and prevent the property owner from obtaining a clear title.

Subcontractors have a short period of time after they’ve stopped working to file a lien. They then must enforce that lien by filing a lawsuit within a second short time frame in order to force a foreclosure or the lien expires.

This is not legal work that a subcontractor should try to perform alone. Our firm has significant expertise in construction law.

If you are a business owner who has not been paid for goods or services rendered, contact an attorney immediately.  In our experience, time does not work in favor of the party to whom money is owed.