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TennesseeSlow Payment

I contract for a GC who works for banks in foreclosure market. We are paid on after 1 month per job. I completed a job on 10/23/19 and was expecting on 11/23/19, it never came. I kept emailing and asking and its always same thing "We are still waiting on payment from bank to pay you". I have read on level set I have 90 days to post a demand letter. Is that 90 days from job completion or 90 days after the expected pay date

1 reply

Feb 17, 2020
For Tennessee subcontractors, the deadline to file a lien will typically be 90 days after the completion of the project. But, if a Notice of Completion is filed, this deadline is shortened to a mere 30 days after that Notice of Completion filing. Of course, for owner-occupied residential projects (maximum 4 units), subcontractors won't be entitled to file a mechanics lien. Though, if the owner of that residential property doesn't reside there, then lien rights should generally be available. Further discussion here: (1) Tennessee Mechanics Lien Guide and FAQs; and (2) How to File a Tennessee Mechanics Lien.

Before filing a Tennessee mechanics lien, other recovery tools could help

Mechanics liens are typically considered the nuclear option. And, utilizing some other recovery tools before jumping straight into a mechanics lien could help. For one, if there isn't a full-blown payment dispute at hand, a simple payment reminder might be all that's needed to get paid. Or, taking things a step further with a demand letter could do the trick too. And, finally, the mere threat of filing a lien claim will often lead to payment - making a Notice of Intent to Lien a valuable recovery tool, too. Plus, considering how mechanics liens can cause trouble during bankruptcy proceedings, the potential for a mechanics lien filing should be particularly worrisome to a contractor and the bank fixing up the property.
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