A legal instrument used to guarantee the completion of a real-estate development according to specifications. It is more encompassing than a performance bond, which ensures that one party will perform under a contract on the condition that the other party performs.
A person or entity that supplies materials used in the construction or repair of a building or other property. If unpaid, a material man may file a mechanic's lien as a legal claim for the value of the materials provided.
A Mechanic's Lien is a legal claim against a property that has been remodeled or improved. It is filed by contractors, subcontractors, or suppliers who claim they have not been paid for their work or materials. The lien ensures that these entities receive payment for their contribution to the construction or repair of buildings or other structures. This lien remains in effect until the debt is settled, and in certain circumstances, it may provide priority over other creditors in the event of liquidation or sale of the property.
A prime contractor, often referred to as the general contractor, is the main contractor responsible for overseeing the overall construction project, managing subcontractors, and ensuring completion in compliance with contract specifics and legal requirements.
