COVID-19 AND THE CONSTRUCTION INDUSTRY

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Have Lien Deadlines Changed in North Carolina Due to the Pandemic?

As a construction law firm, we often advise our clients to protect their right to payment by utilizing the most effective tool in the industry: the mechanic’s lien. Although this is evergreen advice from a Charlotte construction lien attorney, it couldn’t be more relevant than in the present day as many construction businesses struggle to stay out of the red during a pandemic.

Unfortunately, you do not need to be a financial expert to forecast a less than stable economy in the near future. The fact of the matter is that an economic recession will give many owners financial problems and make it harder for them to meet the financial terms of a construction contract. When owners experience financial difficulties, the contractor and subcontractors providing the resources and craftsmanship on a project can get the short end of the stick. This is why it’s critical that you partner with a Charlotte mechanic’s lien attorney that can protect your right to payment by drafting an effective contract and navigating you through the lien process. 

In this brief article, we will review the lien process in North Carolina. We will also discuss whether or not lien deadlines have changed in North Carolina due to the pandemic. Remember, your construction business can deploy a strategy that provides unlimited lien services at an affordable monthly price. To learn more, consult the construction lawyers at Cotney Construction Law. 

What is a Claim of Lien

Cotney Construction Law attorney Ashlee Poplin recently published an article discussing the claim of lien process in the Carolinas. As she stated in her article, “a claim of lien is a remedy that allows the filing party to claim property or funds as security against an amount of money or services owed. It will cloud title to real estate before judgment is entered which gives the filing party an extraordinary remedy that is not provided to other unpaid creditors.” The article also states the difference between the process of successfully filing a lien in North Carolina and South Carolina  — a useful resource for contractors on either side of the state line in cities like Asheville, NC, or Greenville, SC. 

Have Deadlines Changed Due to the Pandemic? 

The vast majority of contractors have experienced some challenges over the last few months (including delays, reduced workforces, or temporary project suspensions). Furthermore, North Carolina has continued to postpone district court proceedings. You may be wondering if the deadlines for filing a claim of lien changed too; however, pursuing lien rights in North Carolina remains the same as before the pandemic. In other words, the deadline to successfully file a lien remains the exact same regardless of how your operations have been impacted. Considering this, it’s of the utmost importance that you partner with a construction lawyer to successfully file a lien and protect your right to payment.  

If you would like to speak with a Charlotte construction lien attorney, please contact us today.

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.