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Difference between revisions of "Builders Liens"
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→Why file a builders lien?
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A lien claimant can file a builders lien to secure payment for work done on—or material supplied to—an improvement to land, such as a construction project. A large construction project is like a pyramid, with a developer (usually a landowner) at the top. The landowner may handle the construction personally, or hire a general contractor. The general contractor may hire several subcontractors such as a plumber, electrician, and so on. Those subcontractors may in turn hire workers and material suppliers. Somewhere in this chain of contracts, someone may not get paid. | A lien claimant can file a builders lien to secure payment for work done on—or material supplied to—an improvement to land, such as a construction project. A large construction project is like a pyramid, with a developer (usually a landowner) at the top. The landowner may handle the construction personally, or hire a general contractor. The general contractor may hire several subcontractors such as a plumber, electrician, and so on. Those subcontractors may in turn hire workers and material suppliers. Somewhere in this chain of contracts, someone may not get paid. | ||
The [ | The [http://www.bclaws.ca/civix/document/id/complete/statreg/97045_01 BC ''Builders Lien Act''] (the Act) helps those who have worked on a construction project or supplied material to it, but haven’t been paid. Under this law, they can file a charge against the property to secure payment of the money owed to them. | ||
But a builders lien is not always good security. When a project fails, those who have filed liens often receive only a fraction of what they are owed. The right to file a builders lien is no substitute for careful credit-granting practices. And people on a construction project who have not been paid have other options to collect money owing to them. They can sue the company or person who hired them, or anyone who guaranteed the debts or contractual obligations of that company or person. They can also make a claim against any bond that a contractor or subcontractor provided for the project. And they can make a claim against anyone who breached the trust provisions of the Act. Script 250, called “Collection of Debts” has more on this. It’s a complex area of law. For legal advice, consult a lawyer. | But a builders lien is not always good security. When a project fails, those who have filed liens often receive only a fraction of what they are owed. The right to file a builders lien is no substitute for careful credit-granting practices. And people on a construction project who have not been paid have other options to collect money owing to them. They can sue the company or person who hired them, or anyone who guaranteed the debts or contractual obligations of that company or person. They can also make a claim against any bond that a contractor or subcontractor provided for the project. And they can make a claim against anyone who breached the trust provisions of the Act. Script 250, called “Collection of Debts” has more on this. It’s a complex area of law. For legal advice, consult a lawyer. | ||