{"id":341,"date":"2014-10-02T12:34:14","date_gmt":"2014-10-02T12:34:14","guid":{"rendered":"http:\/\/www.michaelsmithlaw.com\/blog\/2014\/10\/mechanics-liens-part-1-the-bas.html"},"modified":"2023-11-28T13:40:11","modified_gmt":"2023-11-28T18:40:11","slug":"mechanics-liens-part-1-the-bas","status":"publish","type":"post","link":"https:\/\/www.hpindiana.law\/business-blog\/mechanics-liens-part-1-the-bas\/","title":{"rendered":"Mechanics’ Liens: Part 1. The basics of credit risk and subcontracting"},"content":{"rendered":"

 <\/p>\n

[Note: This one of a series of six posts regarding mechanics’ liens:<\/p>\n

Part 1. The basics of credit risk and subcontracting.<\/a><\/p>\n

Part 2. Reallocating risk in construction projects.<\/a><\/p>\n

Part 3. Acquiring a lien.<\/a><\/p>\n

Part 4. Enforcing a lien.<\/a><\/p>\n

Part 5. Personal liability notices.<\/a><\/p>\n

Part 6. No-lien agreements.<\/a>]<\/p>\n

This starts a short series of blog articles discussing mechanics’ liens and their cousins, notices of personal liability, concepts that arise in the context of construction contracts and similar agreements. To understand what’s special about construction contracts, you need to understand a bit about how contract law, subcontracting, and credit risk work in other settings. So let’s review the basics.<\/p>\n

Imagine your company signs an advertising agency agreement, hiring the ad agency to create a television advertising campaign for your business. The ad agency comes up with the ideas for the commercials, hires a production company to produce them, and purchases advertising time on your behalf from local television stations. The contract to produce the commercial is between the ad agency and the production company, but the contract with the television station is between the television station and your company, signed by the ad agency as your company’s agent, as it is authorized to do by the ad agency agreement.<\/p>\n

Continue reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

  [Note: This one of a series of six posts regarding mechanics’ liens: Part 1. The basics of credit risk and subcontracting. Part 2. Reallocating risk in construction projects. Part 3. Acquiring a lien. Part 4. Enforcing a lien. Part 5. Personal liability notices. Part 6. No-lien agreements.] This starts a short series of blog […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,6],"tags":[],"class_list":["post-341","post","type-post","status-publish","format-standard","hentry","category-construction-law-mechanics-liens","category-contract-law"],"yoast_head":"\nMechanics' Liens: Part 1. 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