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Can I file a lien on a construction project even if I have been on site and been working for 6 weeks?

North CarolinaLien DeadlinesMechanics LienRecovery Options

We are working on a construction site in North Carolina and have been on site for about 6 weeks. Our scope of work is growing as the general on site needs more work done as phases of the project are completed. I am worried that my payments are being slowed as now it is taking about three weeks to get paid. Can I still file a lien on the project?

1 reply

Apr 20, 2020
It's completely normal for payments to be slowed during this coronavirus outbreak, but that doesn't mean the necessary precautions shouldn't be taken. For one, if your scope of work is being increased by your customer, it's a good idea to get everything in writing and to go through a formal change order process. Further, additional steps to recover payment may become necessary, too. With that being said, jumping straight into a mechanics lien filing might not always be a great first step. Rather, there are some less-adversarial tools that might lead to payment without having to resort to a lien claim. Plus, there's generally plenty of time to file a lien - so if one becomes necessary, it will still be on the table. Let's look at some alternative recovery options, then discuss a North Carolina mechanics lien filing.

Recovering payment without filing a mechanics lien

For one, sending something as simple as a formal invoice reminder might lead to payment. Invoice reminders are just like they sound - they're a nudge sent to your customer requesting payment. Turning up the heat some with a Notice of Intent to Lien or a payment demand letter could be useful, too. Considering mechanics liens are such a powerful tool, the mere threat of a lien claim can get payments moving.

Filing a North Carolina mechanics lien

Liens are typically considered the nuclear option, but a mechanics lien filiing will be called for in some situations. As for the timeframe for filing a North Carolina lien - a mechanics lien must be within 120 days of last furnishing labor or materials. S0, the deadline clock doesn't start until work is complete or stopped - and it will run for about 4 months after that date. Meaning, there's a lot of time to sort things out before a lien has to be filed. For more info on filing a North Carolina mechanics lien, these resources will be useful: (1) North Carolina Mechanics Lien Guide and FAQs; and (2) How to File a North Carolina Mechanics Lien | Guide + Form Download.
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