Getting paid on time can make or break a construction company. When project owners or contractors fail to pay, Florida’s lien laws give you a powerful legal tool to secure your payment rights. Understanding how these laws work helps your company recover what it’s owed without lengthy disputes.
What is a construction lien?
A construction lien, also known as a mechanic’s lien, lets contractors, subcontractors, and suppliers claim an interest in the property they worked on if they haven’t received payment. You record a lien against the property, creating a claim that the owner must settle before selling or refinancing it.
How do you preserve your lien rights?
Florida law sets strict deadlines for preserving lien rights. To protect your claim, you must serve a Notice to Owner within 45 days after starting work or delivering materials. If payment doesn’t arrive, record a Claim of Lien within 90 days after completing your work. Missing these steps removes your ability to collect through a lien.
What happens after filing a lien?
Once your company files a lien, the property owner faces pressure to resolve the issue. The lien clouds the property title and blocks the owner from selling or refinancing until settling the debt. If the owner refuses to pay, your company can file a lawsuit to foreclose on the lien within one year of recording it. This process can force a property sale to recover your unpaid amount.
Why understanding lien laws matters
Knowing your rights under the state’s lien laws gives your company leverage in payment disputes. By following the proper steps, you ensure that the law protects your hard work. Keeping organized records, notices, and invoices helps you act fast when payment issues arise.
