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Do I meet the requirements neccessary to file a lien?

I moved to Idaho from another state over a year ago. I have been working for a neighbor who is having a house built. But I have been doing work for him, not directly for the contractor building the house. But all of my scope is directly related to the project. I am not licensed as a contractor of any sort, and still have a D.L. from another state, but technically I am a resident of Idaho. It's only been a few weeks since the last time I performed work there. Question : Am I allowed, or do I qualify, to file a lien on the property for unpaid labor wages?

2 replies

Sep 23, 2019

Idaho mechanics lien claimants must generally be registered in order to file a mechanics lien under Idaho Code 54-5208. While there are some exceptions to Idaho's registration requirement, typically a party who provides construction work to an owner will need to be licensed. Specifically, 54-5205 of the Idaho code sets out exemptions to the state's registration requirements. Under 54-5205(2)(a) and (l), someone hired by a property owner who's working as an employee for wages or salary would be entitled to file a mechanics lien even if they aren't registered. Though, who's considered an "employee" for that purpose could turn into a tricky analysis. More on that here: Idaho Independent Contractor or Employee? That being said, Idaho is not a state that requires preliminary notice be sent in order to preserve the right to lien, and the state doesn't seem to specifically require a written contract in order for mechanics lien rights to arise. So, for a contractor who does not need to be registered, the Idaho mechanics lien requirements are pretty lax. Options for recovery other than filing a mechanics lien Filing a mechanics lien isn't the only way to recover payment. For one, sending invoice reminders might help if the nonpayment hasn't reached a point where something more serious must be sent. When payment disputes persist, moving forward with a payment demand letter might be a helpful option. Demand letters help show that the payment dispute is serious in nature and that the claimant won't go unpaid without putting up a fight. Further, even in a situation where a claimant might not intend to move forward with a mechanics lien, threatening to pursue a lien claim with a document like a Notice of Intent to Lien might be helpful. By sending a threat or warning of lien before filing, a claimant can show their customer that they're serious about recovery and that a mechanics lien filing may be on the horizon. You can learn more about that here: What Is a Notice of Intent to Lien and Should You Send One? For background on options outside of the mechanics lien process, here's are two good resources: (1) Can’t File a Lien? Here Are Some Other Options For Recovery (2) Don’t Want to File a Mechanics Lien? Here Are 5 Other Options

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Sep 24, 2019

Thank you. Your reply has been very helpful. Though it does raise another question for me. Does it do any good to register as a new business at this point regarding filing a lien? Or will that do more harm / raise question? I'm new to the state of Idaho. And being here just over a few months, I've had the intentions of registering for a new business license as a contractor specializing in the same type of work as performed on the project in question, but havent yet.

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