In the past, it was more common for a single entity to undertake the entirety of a large construction project. From providing the needed materials to supplying adequate labor, a single Minnesota corporation may have done all of the planning and work needed to complete a large building project. Today, however, many separate entities may all work on a single project and provide specialized goods and services in order for the building to be finished.
Through the management of a general contractor or other organizing party, various vendors may supply different building materials and services. Residential and commercial buildings need electrical materials and plumbing, framing supplies, insolation and many other unique products to construct a building up to code. In exchange for providing those goods and the specialized labor to property install them, entities involved in the construction process generally expect to receive compensation.
Until a vendor is paid for the vender’s contributions to a building project, the party may hold a lien on the project. Property liens give those who hold them security interests in the undertaken construction projects that are enforceable if a project owner defaults on an agreed upon payment. In the case of a vendor supplying a construction project with goods rather than services, the security interest provided may be called a materialmen’s lien.
Property liens and other security interests in the world of construction law give vendors some confidence that they will be compensated for their contributions to building projects even if those projects are ultimately unsuccessful. Construction vendors who hold property and materialmen’s liens have rights to receiving payment. Attorneys who work in the construction law field can help them enforce their liens to get paid what they deserve.
