... continued from Front
Protect Yourself
pandemic can bring construction to a temporary halt. When that delay occurs, you may be entitled to additional compensation. When you sign the lien release, you give up the right to that additional money for any changes that occur before the date you sign the release. You could end up cutting yourself off from valid claims. Another way it’s used unfairly is if the language of the release does not track with what is happening on the project. For example, the document often promises that everyone working for you on the project had been paid through the date on the lien release. The problem is that this scenario is practically impossible because you can’t pay your own workers, subs, and suppliers until the check has been issued from the top down, which may not happen until after the lien release for that month has been signed. Similarly, another issue arises if the dates on the lien release don’t properly track what you’ve been paid for or who’s getting paid. You may work for a couple months more than what the release states. You end up doing more work than what you’ve been paid for.
At a glance, you would think it’s easy to resolve these kinds of issues, but once the lien release has been signed, you may put yourself at a major disadvantage. Never sign a lien release until you are 100% sure it protects any claims you have on the project and it lines up with the dates you are actually getting paid for.
As always, if you have any questions or concerns about a lien release, you can email me at JWyatt@HarrisonLawGroup.com . We can also speak over the phone at (410) 842-0145 . We can make sure your rights — and ability to be properly compensated — remain intact.
-Jeremy Wyatt
jwyatt@harrisonlawgroup.com
www.HarrisonLawGroup.com
(410) 832-0000
Made with FlippingBook Annual report