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Can I file a lien for cancellation of contract

GeorgiaMechanics LienNotice of Intent to Lien

My company a Roofing Contractor and we provided a compiled service of roof inspection and assisted with the claim approval process for a customer's roof replacement. However, once the roof was approved by the insurance company the customer did not want to have my company replace the roof because he wants to keep the depreciation funds paid by the insurance company. There is a clause in my contracts that states "There is a $500.00 cancellations fee once the contract has been signed" The contract was signed at the beginning of the process. What recourse do I have to get the $500.00 fee? Can this be put in Levelset with an intent to place a lien?

1 reply

Apr 12, 2021

Mechanics liens are only available to the extent that work is done but not paid for. So, if no work was done, then a mechanics lien isn't appropriate. 

Amounts unrelated to work being done (like a contract cancellation fee) may be owed, but the mechanics lien remedy won't be a valid way to pursue those amounts. Something like small claims court or sending the debt to collections may be more appropriate there.

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