When Can A Subcontractor File a Lien?
As a subcontractor working on a construction project, you have a legal right to file a lien against the property if you are not paid for your work. However, there are certain conditions that must be met before you can file a lien.
1. Verify Your Lien Rights
The first step in filing a lien is to verify that you have lien rights in the first place. Typically, subcontractors and suppliers have lien rights if they have provided labor or materials to a construction project.
2. Serve a Preliminary Notice
Most states require subcontractors to serve a preliminary notice to the property owner and general contractor before they can file a lien. This notice acts as a warning that you may file a lien if you`re not paid for your work.
3. Ensure Payment was Due and Not Received
In most states, a subcontractor can only file a lien if they have not been paid for their work. You must ensure that the payment was due, not just that it was delayed. If the payment was not due yet, then it`s not possible to file a lien.
4. File the Lien Within Statutory Deadlines
Each state has its own statutory deadline for filing a lien. You must make sure to file within this deadline, or you may lose your right to file a lien.
5. Include all Required Information
When filing a lien, it`s important to include all required information specified by your state`s lien laws. This typically includes the names of the owner and general contractor, a description of the property and the work performed, and the amount owed.
In conclusion, filing a lien can be a complex process, and it`s important to ensure that all requirements are met. If you`re considering filing a lien, it`s crucial to consult with an attorney or experienced construction law professional to ensure that your rights are protected.
