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Can I lien during a contract/payment dispute?

California

We are a GC in CA currently in the middle of a contract & payment dispute. We have stopped work for 8 business days due to non payment. The client is claiming overpayment. Are we allowed to lien?

1 reply

Aug 29, 2022

If you have a direct contract with the owner or if you served a preliminary notice, you should have the right to record a lien or serve a bonded stop payment notice for the value of your work. The existence of a payment dispute does not restrict your lien rights. You want to be careful that you don't record a lien for more than the value of the unpaid labor and materials because inflating your lien amount could affect your lien.

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