No one likes to see a lien on a project – not the
owner, not the financier, not even the contractor or supplier who
filed the lien. It frequently destabilizes the project as fears of
non-payment lead to crews pulled or financing stalled, resulting in
even greater delay and risk to the lien claimant for whom payment
is already late. Most in the industry avoid liens at all cost, but
too often that cost falls on those who the lien was intended to
protect. By clear communication and compliance with the legislation
from the outset, fallout can be contained without sacrificing the
underlying intention to protect people at risk of never being paid
for their work and materials.
Unlike a "personal" action which gives successful
claimants rights against the opposing party, a lien pursuant to the
Mechanics' Lien Act immediately stakes an interest in
the real property that has been improved by the unpaid work or
materials. Quite a phenomenon in an
"innocent-until-proven-guilty"
