Act Fast to Protect Your Rights: The Importance of Securing Construction Liens

On Behalf of | Jan 29, 2025 | Real Estate Law

In the construction industry, it’s common for businesses to perform work or deliver materials without full payment upfront. Typically, clients provide a partial deposit to cover materials or initial work, with the balance due upon completion. This arrangement often serves as a safeguard for clients, ensuring the company fulfills its obligations before releasing the final payment.

Unfortunately, this system doesn’t always work as intended. Construction firms and suppliers sometimes face delayed or denied payments, leaving them in a challenging financial position. When this happens, securing a construction lien can be a powerful tool to protect their right to compensation. However, acting quickly is crucial, as waiting too long can result in the loss of this legal remedy.

Strict Deadlines for Filing Construction Liens in Florida

Construction professionals in Florida must adhere to strict deadlines when filing construction liens. The clock starts ticking the moment a project is completed or the last materials are delivered. Under Florida law:

  • Lien Filing Deadline: Businesses typically have 90 days from the final workday or last delivery of materials to file a construction lien. Missing this window means forfeiting the right to file altogether.
  • Enforcement Deadline: Filing the lien is just the first step. To enforce it, lienholders generally have one year to initiate foreclosure proceedings. Waiting too long to act can render the lien unenforceable, leaving the business without recourse to recover payment.

The Consequences of Delay

In an effort to maintain goodwill or provide clients with more time to pay, some construction companies delay filing liens. While this might seem like a good-faith effort to resolve the issue amicably, it can lead to dire consequences. Once the legal deadlines pass, the company loses its strongest form of leverage, making it significantly harder to recover the payment owed.

A construction lien provides businesses with a powerful legal tool to protect their financial interests. It ensures that the property in question cannot be sold or refinanced until the debt is satisfied. In some cases, the lien may also lead to foreclosure proceedings, compelling the client to resolve the debt or risk losing the property.

Why Prompt Action Matters

Securing a construction lien isn’t just about recovering money—it’s about protecting your business’s bottom line and financial stability. Delaying action could jeopardize your ability to recover funds, forcing you to absorb unnecessary losses. By acting promptly, construction professionals can:

  • Safeguard their right to payment.
  • Pressure delinquent clients to resolve outstanding debts.
  • Protect their business from financial strain caused by non-payment.

Taking legal action doesn’t necessarily mean burning bridges. Filing a lien provides leverage to negotiate with the client while keeping the possibility of an amicable resolution on the table.

How to Strengthen Your Position

To maximize your chances of successfully securing payment, consider these best practices:

  1. Maintain Accurate Records: Document every aspect of your work or materials provided, including contracts, invoices, and communication with the client. Clear records are critical for a strong lien claim.
  2. Understand Your Rights: Familiarize yourself with Florida’s construction lien laws, including the 90-day filing deadline and one-year enforcement period.
  3. Act Promptly: If a client delays or denies payment, consult with an experienced construction attorney immediately to initiate the lien process before the deadline.
  4. Communicate Clearly: Keep open lines of communication with clients to understand their payment timeline and intentions. This can sometimes resolve disputes without legal action.

Secure the Payment You Deserve

Construction firms and suppliers play a vital role in Florida’s booming development industry, but the risks of non-payment can’t be ignored. A construction lien offers a critical layer of protection when clients default on their financial obligations. Acting quickly and strategically ensures that your business can continue thriving despite setbacks.

At Lesak Legal, we understand the challenges construction businesses face when payments are delayed or denied. Our experienced attorneys can guide you through the lien process and help you protect your financial interests. Contact us today to discuss how we can assist you in securing the payment your business deserves.

Need help securing a construction lien? Contact Lesak Legal today at 904-901-4750 or use our online contact form to schedule a consultation. Don’t wait — time is of the essence when protecting your right to payment.