Home>Levelset Community>Legal Help>Can I file a Mechanics Lien? What are our rights as subcontractors?

Can I file a Mechanics Lien? What are our rights as subcontractors?

We’re a subcontractor working on a large Federal project. We finished our work on the job February of this year but haven’t gotten paid – and the customer is just either not responding or giving excuses as that there’s discrepancies with the invoices but they don’t tell us what the problem is or reach out about the discrepancies. Could you please advises us on what to do next, do we go straight to filing a Mechanics Lien? And what are our rights?

6 replies

Jun 11, 2020

We're located in California we had 3 different employees within the same job, but have different accounts for each, the last employee's last day of work at the job was 02/14/2020, it looks like we're beyond the 90 day period to file a Mechanics Lien, do we still file it?

Report Spam

Jun 12, 2020

Good morning! If this is truly a federal project, you are likely not allowed to record a mechanics lien (there are some limited exceptions for PPP projects or leaseholds on federal land). Rather, you should have a Miller Act Bond Claim right against the project. As a general rule, every supplier or subcontractor who deals directly with the prime contractor or a first-tier subcontractor may bring such a claim. If you are not in direct privity of contract with the prime contractor, the Miller Act does require a written demand for payment to be made upon the general contractor within 90 days from the last day you furnished labor or materials to the project. This notice muss be served by some means which allows third party verification of delivery/receipt (e.g., certified mail, FedEx, etc.). Based on the information you have provided, this could be an obstacle for you. We have, however, successfully argued around this issue in the past (e.g., that a demand for payment sent by email to the prime contractor satisfied that requirement) and there may be some creative ways to still satisfy this requirement. Also, the bond claim notice should be sent to the payment bond surety as well as the general contractor and you should have that information from the general contractor already; if not, you should ask ASAP and if necessary, get it from the government. If you are in a direct contractual relationship with the prime contractor, it is a good idea to still give your notice of your bond claim to the prime contractor and surety even though you may not be statutorily obligated to do so. The lawsuit to enforce the Miller Act Bond Claim must be filed within one year of the last date of furnishing labor or materials to the project.

1 person found this helpful

Helpful

Jun 12, 2020

What happens if we're past the 90 days for the written demand for payment? Can we still send one? It has been around 120 days since the last day we finished working at the job site.

Report Spam

Jun 12, 2020

Are you in direct contract with the prime contractor? If so, you can go ahead with your bond claim notice to the prime contractor and surety to get the process going, and if resolution is not forthcoming, you will have counsel file your lawsuit in the appropriate district court to enforce the bond claim. If you are NOT in direct contact with the prime contractor (i.e., you are a sub to a first-tier sub), you may have difficulties satisfying the claim requirement. You still have your contract claim against your customer, of course. Does that help?

1 person found this helpful

Helpful

Jun 12, 2020

We were in fact hired by the prime contractor, this was very helpful, thank you so much Christopher!

Report Spam

Jun 12, 2020

Good news! And if you would like a bond claim notice form template, just send me your email and I will take care of that ASAP. Be well! --CN

0 people found this helpful

Helpful