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How to Use Mechanic’s Liens to Protect Your Construction Business

The construction industry is based upon contractors, subcontractors and suppliers furnishing labor, equipment, material and supplies consumed on a job site with a promise of repayment. If that promise is broken, and the owner fails to pay, those contractors, subcontractors and suppliers can be out several months of gross income, while still owing their own suppliers, subcontractors and employees. Suppliers and subcontractors don’t even have written agreements with owners. Conversely, if owners had to put up all the money before the work begins, many projects would become unmanageable.

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