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Can we file a mechanics lien with no change order signed?

CaliforniaChange OrdersConstruction ContractMechanics Lien
Anonymous General Contractor

We have the executed original/base contract with the HOA management company representing the HOA for the particular property at $X amount, for a water damage reconstruction project. We are the prime/general contractor on the project with no subcontractors. No preliminary notice was sent or filed. During the course of construction, the unit owner/designee asked for upgrades and work not covered by the HOA. As a matter of service and courtesy and to address their sense of urgency, we had verbally accepted to perform the work at their agreed-upon amount of $Y, which is only a third of the original/base contract amount. Because of their sense of urgency, we missed and did not secure a signed change order for the $Y amount. All of the work was done successfully to include the change order work. Can we still lien the property? It's been passed 90 days. But what if it is within 90 days from substantial completion? We appreciate your time and efforts. Thank you.

2 replies

Managing Partner at Miller, Ross, & Goldman
| 18 reviews
Feb 17, 2020
As the project GC, the Preliminary Notice was required within 20 days of starting the project if the project has a lender. Generally, in California it's always a good idea to send the 20-day Notice to all project parties, regardless, just to cover your bases. If you're within 90 days of completion, you should get your lien filed. Without the benefit of reading the contract with specific stipulations on change orders nor assessing the context of verbal or written communication regarding same, I can only render an opinion based on your comments. Generally, if you were induced to complete the additional work by the owner, even in the absence of signed change orders, payment of change orders will be upheld by the courts in most circumstances.

If my guidance or suggestions are unclear or I can further assist your company with any unpaid invoices, please feel free to call or email. Remember, while perfected lien rights do afford a more direct path to payment, my firm can succeed for you even when lien rights have expired or were never pursued.

Mike Ross Miller, Ross & Goldman mross@mrgpartners.com (512)275-6412 Direct https://www.mrgpartners.com/levelset
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Anonymous General Contractor
Question Author
Feb 18, 2020
Much appreciated, Mike. We will be in contact if the situation remains. Our perfect track record has recently been dinged for 1 single non-payment amount - not significant but nonetheless not good. Thank you again.
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