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Client won’t allow access to fix an inspection issue

Client raised an issue with the local inspector after she refused payment. We have made scheduling attempts to fix the issue, but she won’t allow access. What options do we have? We have filed a mechanics lien, and we have sent a letter to the inspector that we have abandoned the project (due to nonpayment). Does this give her any leverage and not paying the bill for a minor inspection issue?

1 reply

Nov 20, 2019

A mechanics lien filing is typically one of the most powerful ways to recover construction payments. But, unfortunately, a lien filing won't always guarantee payment without further action - especially where an owner is being unreasonable.

Recovery steps after a mechanics lien has been filed

There are steps that can be taken after a mechanics lien filing that help to recover payment, and we'll explore some of those below. On that front, this resource should also be valuable: The 4 Steps to Take After Filing a Mechanics Lien.

Sending a Notice of Intent to Foreclose

For one, sending a document like a Notice of Intent to Foreclose may do the trick. A Notice of Intent to Foreclose can work to show the property owner that this lien filing is no trivial matter and that if left unresolved, the claim could result in the loss of their property. It shows that the claimant is serious about getting paid what they're owed and unafraid to take whatever steps are necessary to get paid.

Enforcing the mechanics lien via lawsuit

If a mechanics lien has been filed but payment still isn't coming, then a lien enforcement suit might end up being necessary. Nobody likes a mechanics lien, and everyone really hates a lawsuit. Unfortunately, though, it's sometimes a necessary step. Of course, before deciding to pursue legal action, it's a good idea to consult with a local construction attorney. They'll be able to more thoroughly review the situation, assess whether some other recovery route might be an option, or even tack on other claims to increase recovery.

Other legal options that might help payment recovery

In addition to a mechanics lien or lien enforcement suit, there may be some other causes of action that can put more pressure on an owner to make payment. For one, payment is a key term of any contract, and failure to make payment can certainly give rise to a breach of contract claim. Further, South Carolina has prompt payment laws on the books which provide additional penalties to owners who fail to make timely payments - so that angle may help too. Finally, as mentioned above, there could be other legal claims on the table too - and consulting with an attorney could help to identify what claims may be available and most effective. Further, while a lien enforcement suit requires the filing of a more-traditional lawsuit, keep in mind that other legal claims might be made in South Carolina small claims court, depending on the size of the dispute. And, small claims court provides an opportunity to quickly and efficiently resolve a legal dispute.

Will abandoning a project due to nonpayment work against a contractor seeking payment?

This is a hard question to answer. Ultimately, if things come down to a lawsuit, any number of factors can fall one way or another to support or work against a contractor's claim. However, as long as a contractor has acted in a reasonable and measured manner, and as long as honest attempts were made at recovering payment before ultimately abandoning a job, there's a fair chance that abandoning the job would not negatively affect recovery attempts for amounts already owed prior to that point. Of course, everything should (and will) be taken into context. i.e. If payment wasn't all that late, if payment recovery attempts weren't sufficient, or if the contractor has breached their contract in some way, abandonment might not be proper and might work against recovery efforts. But still - an owners refusal to work with a contractor to try and resolve issues would seem to work against any claim that the contractor, themselves, had breached their contract by abandoning the job.

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