Builders' lien can simply be described in layman language as a process of registering a legal complain due to non-payment for work done on a building project. In short, if you've done work on a building or supplied materials and you haven't been paid for your services, then you are eligible to file a builders lien.
Deadline for filing a builder's lien
There's a specific number of days set by law, which you must file a builders lien if you want to be successful in your case. For example, in the city of Alberta, you must file a builders lien within 45 days after you've completed offering labor or supplying material to the building site. Click this link Builders Liens to see more information.
If you do not file your case within those days, then you may never recover money owed by the building contractor because the law doesn't provide any means of extending the time for filing a builders lien.
Importance of builders lien
Builders lien ensures that laborers or construction materials suppliers interests are protected under the law. This law compels the main contractor to pay workers or suppliers of materials on time.
However, it's important to file a builder's lien within 45 days of rendering your labor or service if you want to get paid.
Registration of builder's lien doesn't necessary guarantee that the supplier or the subcontractor will be fully paid, particularly if one doesn't follow the strict rules set by the law. As such, it's critical to seek legal help if you are planning to file a builder's lien. Witness the best info that you will get about Builders Liens Alberta Limitations.
Suppliers and laborers aren't the only parties protected in a builder's lien. Homeowners are allowed under this law to withhold 10 percent of the entire project cost until they are sure that the main contractor has fulfilled his or her obligations as per the law.For example, if the total cost of the project is $200,000, the homeowner is allowed by the law to withhold about $20,000 until he is sure the contractor has met all the project requirements and paid subcontractors and suppliers.
Such funds are withheld for around 55 days after the completion or abandonment of the project. A homeowner can only release the funds upon verifying that no builder's lien has been filed.In a nutshell, a builder's lien is a very helpful law as it protects suppliers and service providers from being swindled their hard earned cash. Also, homeowners are protected again rogue contractors who may not fulfill their contractual obligations on a building project. Seek more info about builders liens https://en.wikipedia.org/wiki/Lien.