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In this video, construction lawyer Mike Stewart explains builders liens for contractors. He emphasizes that although builders liens can be complex, they are a powerful tool for securing payment. These liens originate from the Builders Lien Act, which outlines who can file a lien based on the work performed. Generally, contractors can file a lien on a property, placing a charge on its title, which restricts the owner's future dealings. For instance, if a property owner is financing construction with bank loans, the bank will notice the lien and may require its removal, prompting the owner to pay the contractor to clear the lien or to pay the holdback, ensuring the contractor receives payment.