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Amount of Mechanic's Lien

I have a current contract with approved change orders. There is a large balance due. Due to a disagreement with the client, we will not be performing aspects of that contract, and have issued a Change Order to reduce the amount of the contract, however the client has not signed it. Therefore, legally, the contract amount has not changed. I'm at the point I need to file a lien, I don't want to use the wrong amount, but I know I cannot add to a Lien once it's filed. Am I wrong to file it for the balance of the contract. I'm happy to adjust it later, once the change order is signed.

1 reply

Aug 10, 2021

You are entitled to be paid for the value of the improvements. Civil Code Section 8430 says: "(a) The lien is a direct lien for the lesser of the following amounts: (1) The reasonable value of the work provided by the claimant. (2) The price agreed to by the claimant and the person that contracted for the work. (b) The lien is not limited in amount by the contract price for the work of improvement except as provided in Section 8600. (c) This section does not preclude the claimant from including in a claim of lien work performed based on a written modification of the contract, or as a result of rescission, abandonment, or breach of the contract. If there is a rescission, abandonment, or breach of the contract, the amount of the lien may not exceed the reasonable value of the work provided by the claimant." Good luck

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