Remove Claims Remove Legal Remove Lien Remove Risk
article thumbnail

Does a Lien Affect Your Credit Score?

Levelset

If you receive a notice that a lien has been filed on your property, you may wonder how it will affect your credit score and your ability to borrow money or get credit. Mechanics liens are different from other collection instruments, so they are treated differently when it comes to reporting on your credit history. What is a lien?

Lien 96
article thumbnail

Is Filing a Lien or Bond Claim Risky?

Construction Equipment

When a construction company has difficulty getting paid, state laws allow it to file a bond claim or mechanics lien. Nate Budde, chief legal officer for zlien , discusses the importance of providing preliminary notice and the risks of filing the claim.

Lien 48
professionals

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What Contractors Need to Know About Surety Bonds

Construction Marketing

Surety bonds are financial guarantees that are issued to ensure the individual or company who obtains the bond will perform work in a legally compliant manner and will avoid fraud and misconduct. Surety – The bonding company that guarantees the principal’s ethical operations and legal compliance by issuing the bond.

article thumbnail

7 Things Contractors Need to Know About Retainage

Fieldwire

The practice dates back to the 1840s, dreamed up as a measure to reduce the owner’s risk and ensure that the project is fully completed according to the job specifications. Retainage does not extend the mechanics lien deadline A mechanics lien is perhaps the most powerful tool that contractors have to force payment.

article thumbnail

Assignment of Benefits for Contractors: Pros & Cons of Accepting an AOB

Levelset

When a property owner files an insurance claim to cover a restoration or roofing project, the owner typically deals directly with the insurance company. An assignment of benefits , or AOB, is an agreement to transfer insurance claim rights to a third party. AOBs take the homeowner out of the claims equation. Setting up an AOB.

article thumbnail

Subcontractor Default Insurance: Pros & Cons for General Contractors

Levelset

While general contractors commonly use performance bonds to reduce the risk of default, a bond ultimately protects the property owner, not the GC. In addition, SubGuard does not provide protection against mechanics liens from unpaid second-tier subs and suppliers. The insurance company reimburses ABC Builders for the claim amount.

article thumbnail

Does GC Insurance Cover Subcontractors?

Levelset

General contractors know these risks when they take the role. However, the types of policies and their limits (the maximum amount claims can pay out) are limited. However, with the amount of risk involved in a standard construction project, general contractors typically need to hold multiple policies. Builder’s risk insurance.