Posts Tagged ‘Lien Deadlines’

Promises To Pay Mean Squat To Your Lien Deadlines

On October 18, 2010        

Owed money on a construction project, but weary about filing a mechanics lien because the owner or contractor is promising to pay?

Well, as the promise to pay “tomorrow,” turns into “Friday,” and turns into “next week,” the time period available for you to file a mechanics lien continues to tick.   And in some instances, the time periods can be quite short.

It’s very important for contractors and suppliers to realize that these promises to pay do not extend the lien period.   You only have one shot to file your mechanic lien, and once the window closes, it will never re-open.

So, while a promise to make a payment is a significant comfort (it’s better than an outright refusal to pay), a business should be weary about relying on this promise and foregoing its right to lien.   The lien protections will disappear…and your client’s promises?   Who knows.

This article was originally posted on Zlien’s topic-specific Construction Lien Blog.

Related articles
Posted in:     Mechanics Lien  /  Tags: , ,   /   Leave a comment

I Didn’t File My Lien On Time…Now What?

On August 31, 2010        

Over the weekend, I answered a question over on Avvo.com about mechanic liens that gets asked very often, and I thought it was a good idea to share here.

The question is this: What are my legal rights as a contractor if my lien is not filed on time?

The question was asked related to Washington law, but the answer is applicable around the nation. Mechanic liens are an excellent remedy – and I highly recommend preserving and using these rights when needed. However, they are not a contractor’s only remedy.

What other rights does a contractor have? Take a look at my answer here:

Liens are a terrific remedy for contractors. If you’re unpaid and file your lien on time, you acquire security rights against the property itself and are legally able to file suit against parties who you did NOT contract with (i.e. the property owner, if you are a sub).

However, if you don’t file a lien, you still have plenty of legal rights to recover what is owed to you.

Your rights, however, are exclusively against the party who you contract with. You have an action against them for breach of contract. The period to bring this suit is quite a bit longer, between 3-6 years, depending on the type of contract.*

*This is the statute for Washington. Remember that the statute of limitations will be different depending on your state.

It’s important to contact a great construction attorney to bring a breach of contract suit if you are unpaid, and are too late to proceed with lien rights. Find a construction attorney in your area at Avvo.com.

This article was originally posted on Zlien’s topic-specific Construction Lien Blog.

Posted in:     Filing Requirements  /  Tags: , ,   /   1 Comment