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Do we have Lien rights

VirginiaBonding Off LienLien DeadlinesMechanics Lien

Hello, We worked on a job in Virginia from 03/01/2021, and we delivered 6 containers, last one 05/20/2021. Client didn't pay for last container because of some issues, but was ordering small orders up till 10/07/2021. Client paid for small orders. We decided to Lien this project, because client is not paying debt from last container in May. Alter looking to Virginia Lien Laws, we saw that we can file a Lien for materials delivered within 150 days - that means our debt from May is not covered. We canceled last small order for client which one we had to deliver this month, so our last delivery date now is 10/07/2021 - if we would submit post work notice now, we are late by 15 days to do that. Could you please advice if we still have Lien rights even if we submit Post work notice now? And if we have Lien rights, can we file for amount owed from May? Please advice what should we do in this situation, as client said if we will file a Lien they will bond off that Lien

1 reply

Nov 23, 2021

The 150 day "lookback" provision captures money owed for work performed within 150 days of the last date of work or the recording of the lien, whichever is sooner. Another potential issue is whether the container deliveries were for materials "incorporated into the real estate." This last affects the right to a lien in the first place.

As to whether you can record a lien, it would depend on your contract. If each delivery was a separate work order, then teh 90 days would be calculated from each delivery. If they were all on the same contract, just different delivery dates, then the 90 is calculated from the last delivery date presuming your deliveries meet the test above.

Finally, VA does not have a preliminary notice requirement outside of limited circumstances in residential construction and whether they bond the lien has no bearing on your right to a lien.

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