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Are contractors filing liens when they are still owed retainage?

My work is typically done at the beginning of a job, but sometimes the actual job itself will not end for years. Are there other contractors in my position owed retainage that still choose to file a lien within the 90 day required timeline of their last day on the job? And if so does that not mess up the situation with the bank?

1 reply

Dec 18, 2019

You actually have 90 from project completion by all trades (not just your work) to record a mechanic’s lien - unless a notice of completion is filed in which case, as a subcontractor, you would have 30 days from the date of the notice of completion. You can file a lien to recover unpaid retention as soon as it becomes overdue per your contract. The lien likely will cause problems forcing your customer to either pay you, or the owner to bond around the lien. Be sure to watch your deadlines both for recording the lien and foreclosing it.

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