Home>Levelset Community>Legal Help>Can we 90 day machincal lean a Phase in a multi phase project?

Can we 90 day machincal lean a Phase in a multi phase project?

We are in a multi phase project, on Phase 3 of 6. We are almost done with Phase 3 and still have not received final payment on Phase 2. IS this a point we many use the 90 day mechanical lean to push for payment? But since we are not complete with our work do that void the availability to use this lean? If we stop work can we apply the above timeframe and lean? Than once payment is received can we start work again? We want to be able to receive the billing paid and continue the project.

1 reply

Jan 16, 2020

You may not record a mechanic's lien until your work on the project is complete or you are no longer working on the Project. You are correct that performing work after recording your lien will invalidate it. You might be entitled to stop work under your contract due to the lack of payment. But this is a risky move that could give rise to counter claims. If you are subcontractor, likely the best move would be to serve a stop payment notice instead. If there is a lender on the project you can serve stop payment notice even as the direct contractor. But be sure to obtain a bond for your stop payment notice if there is a lender. There lender is not required to withhold any money unless the stop payment notice is bonded.

0 people found this helpful

Helpful