A mechanic’s lien allows your construction company to put a lien against real property that you performed work on and have not been fully paid for. This can be an important way to ensure that contractors are paid for their work. However, there are certain steps and timelines that you need to honor to have an enforceable mechanic’s lien. If you are concerned about complying with the appropriate requirements and deadlines for the filing of your mechanic’s lien, reach out to a contractor attorney in Brentwood, TN, with Cotney Construction Law.
Serve a Preliminary Notice
Depending on your state, you might be required to serve the property owner a preliminary notice within the date of starting work on the property. For example, in Tennessee, a Notice of Non-Payment must be provided to the owner within 90 days of the last day of the month that labor or materials were provided. Separate notices are required for each month unpaid labor or materials are provided.
Create a Mechanic’s Lien
Next, you need to create the actual mechanic’s lenient, which includes a list of the specific types of damages for work and materials you supplied. You cannot collect non-monetary damages from a mechanic’s lien. Once it’s complete, you will have to serve it to the property owner. Your contractor attorney can give you more guidance on how to serve the mechanic’s lien and the next steps.
Record the Mechanic’s Lien
Generally speaking, a lien must be filed within 90 days of the completion of the work or improvement with the relevant municipal body for it to count. In the event that the property owner filed a notice of cession or completion, you might have the ability to file it sooner. Following that, you only have a short amount of time to enforce the mechanic’s lien with a lawsuit. Simply recording a lien is often not enough to get the outstanding payment.
No construction company starts a project with the intention of having payment issues and needing to file a mechanic’s lien. Fortunately, it is a strategy that your company has available in the event that you need it for nonpayment. If you have questions about enforcing a mechanic’s lien, contact a contractor attorney in Brentwood, TN, from Cotney Construction Law.
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.