How To Transform Your Manual Lien Management Process
Lien management software is an ideal solution for tracking outstanding payments at risk for a lien and those which are free and clear. To understand the full value of automating lien management, it’s essential to clarify a few things, starting with what is a lien release and what does the lien process require? A lien release removes a lien from public record, whereas a lien waiver waives lien rights to the amount owed when payment is received. A lien waiver can help prevent mechanic’s liens from being filed. Builders, Subcontractors and Suppliers can file a mechanic’s lien with the public recorder’s office if they haven’t received payment for completed work. Filing the lien release requires going to the same office where the mechanic’s lien was filed and submitting the release paperwork. This prevents expired liens from remaining part of public record and ensures the property can be sold.
The timing of filing construction lien releases is critical. A lien that is wrongly maintained can lead to costly litigation and in some cases, incurring any other costs that result from this error. On the other hand, you should never file a lien release until payment has been made because a lien usually can’t be reinstated. To transform your process, look for lien release software with the following features.
Ability to Upload State-Specific Documents
Lien filing requirements vary by state. For starters, many states register land records by county, some by towns, and at least one by the state itself. Most states require that the lien be foreclosed upon within a specific period of time, some as little as 90 days. Negotiating a release of liens in a timely manner is critical to avoid costly litigation. Look for software that enables uploading your legally approved state documents to simplify the process.
Lien Management That Integrates With Existing Construction Software
Incorporating a completely electronic process eliminates physical paperwork, signing, faxing and delivering documentation. It’s even better if lien management is an integrated feature of the platform your Suppliers and Trades already use. This enables Suppliers to access the lien release software, digitally sign documents and send them directly back to you. The software should include automatic alerts when documents are signed, as well as alerts and reports for late, unsigned waivers. This greatly reduces the risk of overlooking these important documents and preventing associated consequences.
Safe and Secure Document Storage
Secure, electronic access to lien documents enables quick retrieval and eliminates the risk of losing or misplacing paper documents and forms. Detailed access to lien reports makes it easy to keep track of signed lien documents by project or document.
Transform Your Lien Management Process with Hyphen BuildPro Lien Release
As a BuildPro user, you already know all the benefits provided by this leading cloud-based residential construction software. Hyphen Solutions Lien Release software automates lien processing and reporting with absolute efficiency. Merging payment data into a user-selected lien document, then automatically sending the document to the corresponding Supplier/Trade via SupplyPro saves time and money, reduces the risk of noncompliance with state lien laws and keeps projects moving smoothly through the pipeline.
Learn more about BuildPro Lien Release. Schedule a demo to discover how built-in automated lien release software in BuildPro can streamline the lien process for you and your Suppliers!