As we discussed in part one of this two-part series, contractors in Alabama have to discern which of the state’s two mechanic’s liens applies to them. One lien greatly benefits general contractors, while another comes with additional steps and limitations. Knowing which applies to you is essential to retrieving outstanding payment. As we conclude this series, a Birmingham contractor attorney at Cotney Construction Law will be discussing the Full Price lien, the mechanic’s lien that is available to those that contracted directly with an owner.
It will always benefit contractors to learn as much as possible about their state’s lien laws, but there is only so much that online research can do. For all of your legal needs, including protecting your lien rights in the contract drafting phase, please consult with one of our Birmingham contractor attorneys.
Full Price Lien
A Full Price lien is available to general contractors and other parties that have contracted directly with the project owner. Other parties that have sent a preliminary notice are also entitled to a Full Price lien. Material providers who have delivered a Notice to Owner Prior to Performance before supplying materials are also entitled to the Full Price lien.
Full Price liens have a couple of advantages that make them preferable to Unpaid Balance liens. If you contracted directly with the owner and are wondering when you have to send a preliminary notice, you don’t have to. A Full Price lien has the added bonus of securing the entirety of the debt against the property, hence the name. The deadline to file is the same for both liens and are as follows:
- Laborers: 30 days from the date that labor was last provided
- General contractors: 6 months from the date that labor was last provided
- Suppliers and other parties: 120 days from the date that work or materials were last provided
Filing and Expiration
This section applies to both types of liens. A mechanic’s lien in Alabama can be filed with the county in which the property resides. Once the lien is filed, you will have 6 months to enforce the lien or else the lien expires. Always consult with an attorney at Cotney Construction Law to aid in the enforcement of a mechanic’s lien.
As we’ve seen in this series, notices and deadlines can greatly alter your claim to an outstanding debt. Don’t let the validity of your claim become threatened due to an innocent misunderstanding of Alabama’s lien laws. No matter where you are in this process, whether it be filing or enforcing a lien, a Birmingham contractor attorney can ensure that every measure is taken in reclaiming what you are owed.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.