Menu
Home>Levelset Community>Legal Help>As a supplier, when filing a lien for materials, can we include the amount of shipping/surcharges in our amounts due?

As a supplier, when filing a lien for materials, can we include the amount of shipping/surcharges in our amounts due?

UtahMechanics Lien

We have a supplier that has recently added a 5-7% shipping surcharge to all orders. We usually include those charges in the amount billed to our customer, and they agree to it up front. But if it comes down to a legal battle and a mechanics lien is filed, will the filing for surcharges hold up in court? Otherwise, it could potentially cost us thousands of unrecoverable dollars.

1 reply

Mar 6, 2021

The answer to that question is not well-developed in Utah. Contractors are entitled to a lien equal to the "reasonable value of the preconstruction or construction work[.]" Construction work "means labor, service, material, or equipment provided for the purpose and during the process of constructing, altering, or repairing an improvement" which includes "scheduling, estimating, staking, supervising, managing, materials testing, inspection, observation, and quality control or assurance involved in constructing, altering, or repairing an improvement." If that is a cost your company incurs in providing that service, there are certainly fair arguments that they should be included in the "reasonable value" of the services you provide.

Remember, even if these costs are not "lienable," that does not mean they are "unrecoverable." You can still pursue all amounts you are owed through a breach of contract or unjust enrichment claim should your customer fail to pay. That debt just wont be secured.

0 people found this helpful
Helpful