Why Construction Payment Protection Matters — Backed by Real Data
Every year, poor lien and notice management quietly drains billions from the construction industry. But it doesn't have to. Studies show that missing a single preliminary notice or mishandling lien waivers can mean the difference between getting paid on time—or fighting in court months later.
According to a peer-reviewed study in Automation in Construction, over 80% of payment disputes stem from documentation errors such as missing or late preliminary notices, costing the average contractor 15–25% in additional project expense through litigation and delays [1].
Prelien was built to end that problem.
Many construction firms rely on paper or email-based lien workflows—until something slips through the cracks. Legal researchers have found that incomplete or delayed lien documentation is one of the top five causes of 7–11% cost overruns in U.S. construction contracts [2].
And it's not just contract dollars at risk. The Journal of Legal Affairs and Dispute Resolution in Engineering (2025) reports that payment and lien documentation failures account for 40% of all construction-related claims in court [3]. That means hundreds of thousands of disputes and billions in stalled cash flow across the industry each year.
When lien rights are mishandled, you lose more than payment—you lose time, leverage, and credibility.
Inconsistent or late preliminary notices don't just impact cash flow—they erase legal protection. The Economic Loss Doctrine study highlights that under current U.S. law, once lien deadlines expire, those losses are economically unrecoverable in court [4].
That's why states demand documentation proof like certified mail receipts or registered notice affidavits. The right process protects your lien rights and your bottom line.
Prelien automates the entire process—tracking, delivery, deadlines, compliance—so you never lose protection just because of an overlooked notice or missing waiver.
The numbers speak for themselves:
This is the reality Prelien was designed to fix—turning paperwork chaos into a fast, automated workflow that gets you paid faster, protects your rights, and frees up your team.
We think you deserve more than reminders—you deserve real control. Prelien's end‑to‑end lien management ensures:
No missed deadlines. No lost payments. No legal surprises.
*When used properly
Construction shouldn't run on paperwork panic. With Prelien, every notice, waiver, and deadline is tracked, verified, delivered and at your fingertips—giving you peace of mind when you need it.
Secure your rights. Simplify compliance. Protect what you've built—from the get go.
The construction industry loses $280B annually to payment delays. We've done the research, analyzed the data, and built Prelien to solve the real problems.
Lien releases are an area where even detail-oriented companies encounter unnecessary risk and delay. Multiple forms, precise documentation standards, and strict timing requirements create a high-stakes environment where simple mistakes can result in weeks of lost productivity, delayed payments, and escalated disputes.
Bottom Line: Administrative and legal hurdles in lien waiver and release handling are major sources of construction payment delays and financial risk. Leading research and practitioner commentary make one outcome clear: automated, robust compliance tracking minimizes missed details, reduces delays, and puts control back in your hands.
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