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Can a valid lien be filed on property

AlabamaMechanics Lien

No written contract. Builder gave a budget to build house that was needed for construction loan. In the budget the builder quoted $8500 for dirt work but the invoice presented for payment is $30000 and work not complete. Builder advised if bill not pay he will file a lien against property. There were no conversation from builder about budget was not adhered to or a change order discussed or signed. Its going to take at least $12000 to finish dirt work so that we can start on house foundation. Excavation company had moved all equipment before builder verified that work was completed per house plans. If I don't pay $30000 can the builder and excavation company issue a valid lien on property? I have no sign contract with either party and the budget was $8500.

1 reply

Aug 17, 2021

They can likely place a lien on the property, but the validity would certainly be suspect. Without change orders, they would need to demonstrate that you agreed in some what to that modification. Did they provide a reason it exceeded the budget so tremendously?

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