A question that comes up often is whether an Owner can be forced to pay twice for the same work. In the context of commercial construction, the answer is "yes," if the Owner does not get the appropriate lien releases. A Petition for a Mechanic's Lien allows a subcontractor to collect for unpaid labor, materials and equipment from the Owner when the subcontractor has not been paid by the general contractor. Consequently, if the Owner has paid the general contractor, but the general contractor has squandered the money or otherwise not paid the subcontractor, the subcontractor can collect from the Owner through a Mechanic's Lien. However, if the Owner obtains all of the requisite lien releases from the general contractor's subcontractors, sub-subcontractors and materialmen prior to payment, then the Owner can prevent the entry of a mechanic's lien.
For further questions contact Matt Hjortsberg at (410) 583-2400 or at hjortsberg@bowie-jensen.com
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