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do I continue to work on commercials project if I have not been paid?? do I finish project??

CaliforniaBack ChargesMechanics LienRight to LienSubstantial Completion

not yet 100% complete with project but I have not been paid for work completed and not yet paid. im about to file a mechanics lien but wondering if I should still work on project and finish??>

1 reply

Aug 20, 2020
Whether or not a contractor is required to continue to work after nonpayment can be a complex question. Generally, the right to stop work or leave the project is specifically governed by the contract document itself, which will provide standards for breach of the agreement and applicable remedies. It is worth noting, however, that California Civil Code § 8412 specifically sets forth that a direct contractor (one who contracts with the property owner) may not enforce a lien unless the contractor records a claim of lien after the contractor completes the direct contract, and before the earlier of the following times: (a) Ninety days after completion of the work of improvement. (b) Sixty days after the owner records a notice of completion or cessation." [emphasis added]. Accordingly, it seems that if a GC's work is close to done, it is likely best practice to complete the work contemplated by the contract prior to filing a mechanics lien.  
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