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Home>Levelset Community>Legal Help>Can i take the 3500$ payment and still take a lean. Can i take a lean? should i get a mechanics lean?

Can i take the 3500$ payment and still take a lean. Can i take a lean? should i get a mechanics lean?

TennesseeRight to Lien

I have been working for a guy on a remodel for about 2 months now. I priced the job as whole but also listed the jobs with prices individually. 5 jobs totaling 18,000$. I have also paid all labor and materials along the way. There was no upfront deposit. I have asked for and made 2 small draws since we started totaling 3500$. As we started getting down to the last couple jobs he started adding jobs. At first i was happy to have the work but started to get the feeling that he was just prolonging the final job and final payment. I told him i would do no more new jobs until the first contract was completed and paid but would be more than happy to continue from there but wanted to do it on a job to job bases. With 4 days work remaining to complete original contract which now also included the 6300$ worth of new jobs he added along the way. He came up with a BS reason to fire me and run off the job. So at this point we are at 23,300$ minus the 3,500$ in draws Total 19,800$. One of the jobs was replacing new window through out the house. The bid was written for Windows and trim. I did not specify interior trim only on the windows. The style window that was put in is made for vinyl siding to but up against. when we put the windows in there was not siding on the house at all and still not siding on the house but he is saying he meant for us to and my bid include putting trim around the exterior of the windows. Point is he is saying the window job is not complete so he is not obligated to pay me for it. The window bid was 7800$. there are a couple other jobs that he is saying the same kind of thing on. He told me He would send me a check for 3700$ and that was all that i am owed. That will be paying me 7,200$ on a 23,300$ job. Not to mention that i have about 9k Invested in materials and 6k Invested in labor and expenses. What should i do? I am broke and need money. If i take the 3700 is that me agreeing and its over or should i not take that money?

1 reply

May 5, 2020
Accepting a smaller fee from an owner which they clearly intended as a final payment could ruin the chances of recovering payments, certainly. So, once an owner has made an offer of discounted final payment, it wouldn't be wise to accept that unless you've got confirmation that they'll also pay the additional costs.

How to recover construction payments

There are a number of different tools and tactics used to force an owner to pay what's owed. I'll break a few of them down below.

Demand letters

Sending a payment demand letter could lead to payment. Demand letters typically include specific legal threats and put a deadline on when payment must be made. They'll let the customer know you're willing to do what it takes to get paid.

Notice of Intent to Lien

Mechanics liens are extremely powerful - so threatening a mechanics lien is powerful, too. Sending a Notice of Intent to Lien will let an owner know that a mechanics lien will be filed if payment isn't made and made soon. More on that here: What is A Notice of Intent to Lien And Should I Send One?

Filing a mechanics lien

Mechanics liens are generally considered the nuclear option. But, the fact of the matter is that liens were specifically designed to force construction payments. So, if need be, filing a lien could be a strong option. For more on Tennessee mechanics liens: (1) Tennessee Mechanics Lien Guide and FAQs; and (2) How to File a Tennessee Mechanics Lien.

Legal claims, small claims court, and collections

Pursuing legal claims - like a breach of contract claim - could be effective. And, for claims under $25,000, TN small claims court might be an option for streamlining the dispute and keeping court costs down. Finally, sending the debt to collections could be yet another way to get paid. When deciding whether to pursue legal claims, it'd be wise to consult a local Tennessee construction attorney first.
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