We have an outstanding invoice for an commercial construction inspection that is almost a year old and the borrower is refusing to pay. Are we able to file a mechanic's lien for this outstanding invoice?
1 reply
Jan 9, 2020
There are a lot of complexities with Tennessee's mechanics lien deadline, and Levelset discusses them in detail here: When is the deadline to file a Tennessee Mechanics Lien? As mentioned there, subs and suppliers will have a deadline for filing a lien that is far shorter than a year. But, for contractors hired directly by the property owner on commercial jobs - there isn't technically a mechanics lien filing requirement. Instead, the contractor may often dive straight into a mechanics lien enforcement suitwithin 1 year from last furnishing labor or materials to the project.
Granted, before proceeding with a mechanics lien enforcement, it'd be wise (and likely even necessary) to consult a local Tennessee construction attorney.
Recovery options outside of the Tennessee mechanics lien process
There are always options for recovering payment aside from mechanics lien filings, too. There are recovery options for contractors who want to work with a customer on getting paid, and there are adversarial options on the table too.
For one, sending something as simple as an invoice reminder can be enough to get paid - sometimes a gentle push is all that's needed. Or, going forward with a demand letter can lead to payment too. And, demand letters will generally contain specific legal threats as well as a deadline for making payment.
Further, legal claims - like breach of contract or a claim under Tennessee's prompt payment laws - may be available to help with recovery. And, for disputes under $25,000, Tennessee small claims court could be a good option for streamlining recovery.