When contractors, subcontractors, suppliers, or other professionals aren’t paid for their work or materials on a private construction project, filing a lien can be an effective way to pursue the payment they are owed. A construction lien creates a legal claim against the improved property, and while it doesn’t result in automatic payment, it can help enforce the right to be paid. To be effective, however, the lien must be filed according to specific requirements and deadlines.
Filing Deadlines and Where to File
Liens on private construction projects must be filed within eight months from the last date that labor was performed or materials were supplied, but for work involving a single-family home, the deadline to file is just four months. The lien gets filed with the county clerk in the county where the property is located, along with a fifteen-dollar filing fee. Both timing and location are critical to ensure the lien is properly recorded.
Required Information for Your Lien
The lien must contain specific information, including the name and address of the lienor and, if applicable, their attorney. It should also name the property owner and describe their ownership interest. The lien must identify the party the lienor contracted with, provide a general description of the labor or materials provided, and list the agreed price, the amount that has not been paid, and the amount of the lien. The document also needs the first and last dates of when work was performed or materials were provided, a basic description of the property, and a signed, sworn verification.
Post-Filing Notice Requirements
After filing the lien, a copy must be served within 30 days to the property owner and all upstream parties, meaning anyone who has a direct or indirect contractual relationship with you, going back to the property owner. This can be done by certified mail or personal delivery, and proof of service must then be filed with the county clerk within 35 days of the original lien filing.
How Long Your Lien Remains Valid
Private liens are effective for one year after filing. If additional time is needed, the lien can be extended for another year by filing an extension with the county clerk, but further extensions require a court order.
Protecting Your Right to Payment
For professionals owed payment on a private project, filing a lien correctly can be the difference between getting paid and taking a loss. While these general guidelines provide a helpful framework, the filing process is complex and nuanced. Our Construction Law team knows the ins and outs of construction liens and can help you navigate the process to secure payment.