Payment discrepancies are increasingly prevalent in the construction industry. Between rising material costs and delinquent owners, contractors, subcontractors, and suppliers are finding a number of obstacles standing between them and the payment they have earned on their construction project. Fortunately, Indiana’s mechanic’s lien law provides those who have provided labor, services, or materials on a construction project with the legal tools they need to secure the payment rightfully owed to them. If you are seeking compensation for your work on a construction project, reach out to an Indianapolis lien lawyer from Cotney Construction Law.
How an Indianapolis Lien Lawyer Can Help You File a Mechanic’s Lien
Indiana lien law does not apply to every person or entity involved in the construction project. Those entitled to protection and able to file a mechanic’s lien are lienors — contractors, subcontractors, suppliers to prime or subcontractors, laborers, and equipment lessors — who were never paid for their work on a construction project. Suppliers to suppliers are not entitled to mechanic’s lien protection in Indiana.
Mechanic’s Lien Timelines
One of the most common mistakes made by Indiana’s mechanic’s lien claimants is failure to properly identify when the contract work ends and the period to file a lien begins. It’s important to remember that the lien filing deadline clock begins to run as soon as the claimant last performs work or delivers materials to the project. The deadline by which a mechanic’s lien must be filed in Indiana is determined by the project type. Indiana mechanic’s lien outlines three project categories:
- Residential: single or double unit residential dwellings
- Utilities: property owned or operated by state-regulated utilities
- Other: all other projects, including commercial and industrial
For residential projects, the lien must be filed within 60 days from the date of the last furnishing of labor or materials. For all utilities and other projects, the lien must be filed 90 days from the date. In order to properly serve a mechanic’s lien, you must send notice to the property owner that you have recorded a mechanic’s lien via first class mail no later than three business days after recording the lien. All lien claimants must initiate the enforcement of the lien within one year of the date the lien was received for recording; however, the property owner can shorten the time in which the lien must be foreclosed via a thirty day notice to foreclose to the lien claimant.
Why You Need an Indianapolis Construction Lien Attorney
Recording a mechanic’s lien can be a powerful tool in ensuring you receive payment for your work on a construction project; however, there’s a number of pitfalls awaiting mechanic’s lien claimants if you don’t pay careful attention to all requirements and deadlines. If you’re seeking compensation on a construction project, it’s time to consult with an Indianapolis construction lien attorney who can assist you with the following services:
- Lien Notice Requirements
- Options to Collect
- Contract Drafting and Review
- Eligibility to File a Lien
If you would like to speak with an Indianapolis construction lien lawyer, 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.