Understanding Liens, Lien Waivers, and Construction Risks in South Dakota
Yes, you should know about important things like liens, lien waivers, and the risks that come with construction before you actually hire a construction company. If you’re currently thinking about building or remodeling your home, these terms may seem confusing, but they’re important to preserving your investment and avoiding problems. So, we’ll walk you through the process, and we promise to keep things simple.
What Is a Lien?
A lien is a legal claim by a contractor, subcontractor, or supplier who has not been paid for their work or materials. In South Dakota, if someone who worked on your project doesn’t get paid, they can file a lien on your home. This means your property could be at risk until the debt is resolved.
Liens were created to protect workers and suppliers from dishonest homeowners. But they can also create headaches for homeowners who want to do things right. That’s why it’s important to work with a reputable contractor like iLevel Construction, who will ensure that everyone involved in your project gets paid on time.
In a Nutshell, What Is a Lien Waiver?
WA lien waiver is a documented act that prevents a lien from being registered on your property. When a contractor or subcontractor signs a lien waiver, they are legally giving up their right to create a lien against the person who hired their services or purchased their materials. Simply put, it works similarly to a receipt, confirming that payment has been made and protecting you from future claims.
To avoid any type of difficulty, we value transparency, and we will always clarify any labor issues with our clients.
Risk Profile During Construction
Any construction project entails risks in its execution. And it is your responsibility to be well informed in order to mitigate these risks. Below, we will give examples of some important risks that you should be aware of:
1. Payment disputes: If subcontractors or suppliers are not paid, they can file liens on your property. Therefore, whenever possible, request that payments made be documented and that lien waivers be signed.
2. Project delays: Weather changes, lack of materials or simply unforeseen events can delay your project. In this case, working with an experienced contractor, such as iLevel Construction, helps to reduce these risks.
3. Quality of work: Poor quality work, whether due to unskilled labor or poor materials, can lead to expensive repairs in the medium and long term. Try to reduce this risk by choosing a contractor with a proven track record.
4. Budget overruns: Read the numbers in the contracts carefully; they should be clear, and communication should be open. Try to get detailed estimates.
Why you should Choose iLevel Construction?
At iLevel Construction, we understand the specific requirements of South Dakota citizens. Whether you're building a new home or remodeling, we're dedicated to providing high-quality results while preserving your investment.
Final Thoughts
We hope that now that you are more familiar with liens and lien waivers, you will feel more at ease when they come up. These are key factors to remember when it comes to securing your property during construction.
Working with a reputable contractor, may help to reduce the risks and stress associated with construction.
Are you ready to start your project?
Contact iLevel Construction now to schedule a consultation!
