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commercial project I lien a project and have not gotten paid

Anonymous Contractor

I lien a commercial project, but have not gotten paid can I put a claim to the general contractors bond

2 replies

Matt Viator

Construction Lawyer

Levelset Admin at Levelset

| 1,003 reviews

Jul 7, 2020

If you've filed a California mechanics lien but haven't been paid, there are some additional steps you can take to help force payment - including sending a Notice of Intent to Foreclose. You can learn about those steps here: The 4 Steps to Take After Filing a Mechanics Lien. As you mention above, making a claim against a contractor's license bond might be an option, as well. You can learn about how to make a claim here: Shaken? Stirred? A Primer on License Bond Claims in California | California Construction Law Blog. Finally, keep in mind that legal claims could be on the table in addition to lien foreclosure - such as breach of contract or a claim under the California prompt payment laws. So, pursuing one of those claims - or simply threatening to pursue a claim with a payment demand letter - could lead to payment, too. If you need help deciphering your next steps or pursuing legal claims, one of these California construction lawyers may be able to help: Find a California Construction Lawyer. Plus, keep in mind that for smaller claims, CA small claims court might be an option, too. Sending the debt to collections may be a last-ditch option as well.

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Peter Ryan

Construction Lawyer

Legal Guard Lawyer

Partner at Flores Ryan, LLP

| 280 reviews

Jul 8, 2020

You have 90 days from recording your mechanic's lien to file an action to foreclose if you are not paid. As Matthew noted above, sending a notice of intent to foreclose your lien can motivate payment. But if this does not work, you need to be ready to foreclose your lien by the 90 day deadline. Some private commercial projects have payment bonds. If there is a payment bond in place, you can also file a claim with the surety to recover the unpaid amount. But if the principal of the payment bond (usually the GC) disputes your claim, most likely you will not recover anything from the bond without filing a lawsuit. The contractor's license bond is another potential source of money. But keep in mind that the total of the bond is only $15,000 and under most scenarios you would only be eligible to recover is half of that (if anything). And again, if your customer disputes the claim, there is a strong likelihood that you will not see any money unless you move forward with a lawsuit. If you still have time before your lien expires you might consider a demand letter from an attorney threatening to foreclose on the lien. But if you are within 30 days of the lien expiring, you should seriously consider retaining counsel to prepare a lawsuit to foreclose the lien along with other potential claims such as breach of contract and violation of prompt payment rules. If you require legal assistance email me at ryan@huntortmann.com to schedule a free telephone consultation.

Do not act on the information contained herein without seeking the advice of licensed counsel. The information presented here is general in nature and is not
intended nor should be construed as legal advice for any particular case or client. The law is complex and the specific facts of your situation can cSee More...See More...

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