For contractors and subcontractors, a law that is intended to provide a way to ensure payment for their work may indirectly cause them to sign away many of their rights to dispute contractual and related project issues.
The law is the Pennsylvania Mechanic’s Lien Law, which allows certain contractors and subcontractors who are owed payment for work on a construction project to file mechanic’s liens if they don’t get paid. A mechanic’s lien essentially gives the person or company an interest in the property equal to the unpaid amount, and the owner cannot sell the property free and clear without paying the amount owed.
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