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Do we have the right to file a mechanics lien if the contractor is back charging expenses?

Anonymous Sub-Subcontractor

We have furnished a contractor full labor for a project in Indiana. Contractor we invoice for progress on roof construction for full payment less retainage. Contractor now is deducting from percentage remaining $16,000 for an expense that should be incurred by the contractor. Need advice to know if we do have the right to lien a property based on this.

1 reply

Matt Viator

Construction Lawyer

Levelset Admin at Levelset

| 1,000 reviews

Jul 7, 2020

Indiana subcontractors are generally entitled to file mechanics lien claims when they haven't been fully paid for their work. This is true even when there's a dispute over what's owed - which is often the case. So, if your contractor is back charging expenses that aren't appropriate, filing a lien to force them to pay what's owed might make perfect sense. Of course, before jumping straight into a lien, it might be wise to dispute the charge from the contractor and discuss the matter with them. If they're unwilling to budge, turning up the heat with a Notice of Intent to Lien could show them that you're serious about getting paid and won't accept baseless back charges. What's more, Notices of Intent are typically sent to the property owner, too - and making them aware of the dispute could help put pressure on your customer to pay you what you're owed. More on that document here: What is A Notice of Intent to Lien And Should I Send One? In some situations, filing a lien claim will be necessary, though. For more on how to do that, these resources will help: (1) How to File a Mechanics Lien in Indiana – Step by Step Walkthrough; and (2) Indiana Mechanics Lien Guide and FAQs.

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