Perspectives
Proactive Lien and Bond Protection
For financial professionals, securing payment starts long before an invoice becomes overdue. Implementing proactive lien and bond protections can mean the difference between getting paid or writing off a loss. Here’s how you can set yourself up for success and avoid unnecessary risks.
Start with Strong Documentaion
To file a lien or bond claim effectively, you need a solid foundation of documentation. Missing even one critical piece of information can cause delays or jeopardize your rights. Key documents include:
Contract: Defines the scope of work, payment terms, and lien rights.
Job Level Tracking: Ensures accurate documentation of labor and materials.
Credit Supplement Sheet: Verifies financial details and customer information.
Notices: Preserve lien rights and establish compliance with state laws.
Invoices & Proof of Delivery: Confirm amounts owed and that materials were delivered to the job site.
Understand State-Specific Lien and Bond Requirements
Lien laws vary by state, and missing deadlines or filing incorrectly can cost you your claim. For example:
Utah: A preliminary notice must be filed within 20 days of first furnishing or lien rights are waived.
Missouri: A 10-day Notice of Intent must be served before filing a lien. If your attorney receives the lien request too late, you may lose your rights.
Being aware of state-specific requirements ensures you never miss a deadline.
Verify Ownership and Delivery Details
A lien is only as strong as the accuracy of your filings. Make sure:
The correct property owner is listed-incorrect ownership details can invalidate your lien.
You have proof of delivery to the site, not just a customer’s warehouse or rigger’s yard.
Work Within Key Deadlines
Timing is everything when filing liens and bond claims. To avoid last-minute rushes:
- Request supporting documentation from brances at least 20 days before the deadline.
- Engage WFJ for lien/bond assistance at least 14 days prior to the deadline.
Get Expert Guidance
When in doubt, consult a legal expert. WFJ’s lien and bond attorneys are here to help answer your questions and ensure your filings are compliant. Whether you need an opinon letter or help navigating complex lien laws, our team is ready to assist.
Don’t Wait Until It’s Too Late
By establishing proactive lien and bond protections now, you can prevent financial losses and ensure that your company is paid for the work and materials it provides. Contact WFJ today to discusss how we can help you streamline your process and secure your receivables.