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Can I file a mechanics lien?

Maryland

I'm a GC. 99% of the job is complete, and there is a punch list we were planning on completing. The customer ran out of money, and is trying to delay by adding on or exaggerating work to fully complete. I have reduced my invoice to account for the incomplete work, and want to get paid for work already completed. I have sent a new invoice reflecting the work completed, but continue to get push-back from customer. We agreed to have an independent inspector evaluate the work, and provide a list of items to be completed. The independent contractor's list is consistent with my list of work items. Can I file a lien, as this is now 5 months later and I want to get it done before the 180 day deadline in MD.

1 reply

Jun 27, 2022

In Maryland, a building must be “repaired, rebuilt, or improved to the extent of 15% of its value” before it is subject to a mechanic's lien in Maryland. This limitation does not affect construction of new buildings and instead only applies to renovations, additions, or tenant improvements. Assuming you are properly licensed and qualifed to do business in Maryland and that the work involved is not original construction of the home, you have mechanic's lien rights in Maryland upon improving the value of the property by 15% or more. However, in Maryland you need to file a petition to establish a lien, which involves hiring a lawyer and initiating an action in court resulting in an evidentiary hearing to determine whether good cause exists for establishing the lien. Once established, your attorney must then initiate an action to enforce the lien (which proceeds similar to a breach of contract action). The lien process in Maryland is more expensive and time consuming than is some other jurisdictions, like VA.  

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