Sometimes disputes arise during a building project or remodel. Homeowners may fail to pay for work completed if they are dissatisfied with the work or timeline. Some may withhold payment simply because they can.
For contractors, subcontractors and material suppliers, a mechanic’s lien can be invaluable. Liens are often used when payment disputes arise with a homeowner, or between a subcontractor and general contractor.
How can I enforce a lien and get paid?
There is a strict process that you must follow carefully if you intend to file a lien.
- Pre-lien notice – Before beginning the project, you are required to notify the property owner that you may file a lien if you do not receive payment. If you are a supplier or subcontractor, you typically must include what you intend to provide for the project and an estimate of the cost to the property owner.
- During the project – You must have provide labor or materials that improvethe property.
- Mechanic’s lien statement – The lien will attach once the work is substantially complete. When that happens, you have 120 days to file a lien against the property if you have not been paid.
- Lien claim foreclosure – If the problem persists, you have one year from the last day of work to file a foreclosure action.
At every stage of the process, there are certain things you must do in order to protect your rights and maintain a valid lien. A good construction law attorney can help you cross every T and maximize your chances of getting what you deserve.
Have you ever struggled to get paid by a client? Share your stories below in the comments.
Attorney Greg Lang is a board-certified real property specialist by the Minnesota State Bar Association. At the Lang Law Office in Chanhassen, we have more than 30 years of experience representing contractors, subcontractors and suppliers in the Twin Cities.