Menu
Home>Levelset Community>Legal Help>Can a general contractor record a mechanic's lien on a time and materials contract where there was a cap on costs?

Can a general contractor record a mechanic's lien on a time and materials contract where there was a cap on costs?

California

The general contractor and homeowner entered an agreement to remodel a house on a time and materials basis with a cost range built into the contract. The contractor exceeded the upper end of the range, performed shoddy work, did not complete the project yet presented an invoice which the homeowner did not pay. Does the contractor have grounds to record a mechanic's lien?

1 reply

Jan 23, 2021

If the contractor contends that he is owed money for improving the property then he has the basic grounds to record a lien. Whether or not the lien is ultimately enforceable and for what amount will depend on specific facts of the case including the terms of the contract. The terms of the contract will also govern whether or not an cap on the contract amount was a hard cap. And still change orders may alter this. Shoddy work and abandonment, if proven, would be defenses and/or offsets to the lien claim. But presumably the contractor does not believe that the work is shoddy and the contract may allow him to stop work due to non-payment. Filing a Complaint through the CSLB may be the most cost effective way to address the dispute. 

1 person found this helpful
Helpful