What You’ll Learn
The importance of tracking lien notices
Learn how overlooking lien notices can lead to financial loss and legal complications.
How APARBooks automates lien notice management
Discover how automation reduces manual errors and protects profits by linking related documents like contracts, lien notices, and payments.
What You’ll Need
- Construction accounting software with lien management features
- Access to digital contracts, invoices, and lien notices
- A process for managing payments and subcontractor relationships
The Problem
During a recent demonstration, I encountered a general contractor who had faced a costly situation. After completing a project and making what he believed were the final payments to a subcontractor, a supplier of that subcontractor filed a mechanics lien. Unbeknownst to the contractor, the subcontractor had failed to pay the supplier. This left the contractor legally responsible for the outstanding payment, forcing him to cover the supplier’s costs to release the lien.
This situation resulted in financial losses and time wasted dealing with the subcontractor, supplier, and attorneys. The contractor realized that if he had been better informed about the lien status, he could have avoided the problem altogether. This experience led him to seek out a system to better track lien notices and ensure that all payments were properly managed.
The Hypothesis
The contractor believed that by implementing an automated system to track lien notices, he could prevent similar issues in the future. By ensuring that lien notices were linked to contracts and payments, he could avoid the costly mistake of paying twice for the same work.
The Solution
After reviewing his options, the contractor chose APARBooks. Our software provided a fully integrated solution that simplified lien notice management. Here’s how APARBooks resolved his challenges:
Automated lien tracking
APARBooks creates automatic alerts whenever a lien notice is filed, ensuring that no payments are made without first addressing the outstanding notices.
Document linkage
The system links preliminary lien notices to their associated contracts, supplier details, and invoices, making it easy to track every step of the process.
Error prevention
By removing manual paperwork from the equation, APARBooks reduces the risk of costly errors and allows contractors to make informed decisions with all the necessary information at hand.
The Impact
Since implementing APARBooks, the contractor has been able to avoid further lien-related issues. The software’s automated alerts ensure that all lien notices are addressed before any payments are made, protecting his profits and preventing future legal or financial complications.
By using APARBooks, the contractor has experienced:
Increased efficiency- He now spends less time tracking down lien notices and payments.
Reduced financial loss- No more paying twice for the same work.
Peace of mind- With all documents organized and easily accessible, the contractor can make timely and accurate decisions, protecting his business from unexpected financial hits.
