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Can a contractor who has lost their license foreclose on their lien.

The prime contractor was licensed/insured/bonded at the time the contract was entered into and then prior to completing the project his license was suspended and he lost his bond and insurance was cancelled. We have a dispute over the final bill and he has since recorded a lien. Is he able to record the lien? and if so can he foreclose on the mechanics lien?

1 reply

Sep 19, 2019

Washington contractors must generally be licensed and registered in order to pursue payment claims for the work they perform (if that work requires licensure). This includes the ability to file a mechanics lien - generally, unregistered contractors won't be able to pursue a lien claim if registration is required. However, under RCW 18.27.080, a contractor may still be entitled to pursue an action to collect payment if they were properly registered at the time the contract for work was signed. But, in order to pursue a claim, a contractor must be in substantial compliance with the registration requirement. And, under RCW 18.27.080, a contractor won't be found in substantial compliance unless the contractor is bonded and has insurance throughout the life of the project. Ultimately, though - when a mechanics lien has been filed, the stakes are high. This is especially true where an enforcement suit might be on the table, too. In order to best face a filed lien, it would be wise to consult with a local construction attorney. They'll be able to thoroughly review the situation - including any documentation regarding the apparent licensure and registration issue - and advise on how best to move forward.

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