Liens & Bonds: It’s a Simple Concept
It’s a simple concept: the owner of a piece of real property should not be able to retain the benefits of an improvement without paying for it. Mechanic’s lien laws are the result of a policy intended to protect unpaid contributors to an improvement of real property against the unjust enrichment of a property owner The laws also promote other public policies to include the development of property by providing a vehicle to reduce risk through collateralization. The various lien laws were designed as enablers, but also recognize the reality of an industry characterized by independent contractors that contribute to a work of improvement without having a direct contractual relationship with the owner of the improvement.
