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Do we still have lien rights?

We are a steel contractor with a contract to fabricate and erect an industrial project in TN (private sector). Our customer is a General Contractor who is working for the owner. We are nearing the end of the project and our customer has been slow to pay and we have ~$250k in Change Order Requests outstanding. I want to ensure that we preserve lien rights because we may need that pressure to get paid and / or get change orders approved. If work commenced on 4/3/2020 do we still have lien rights?

1 reply

Jul 1, 2020

Based on the information in your question, the answer would be yes, you have lien rights. Under Tennessee law, a lien claimant must send notice of non-payment to the owner within 90 days of last day of the month labor and materials provided. In your situation, assuming you were not paid for the material furnished in April, you must send notice by August 29th. A notice must be send for each month that you provide materials for which you have not been paid. A notice of lien must be filed within 90 days of the last date you furnish materials. Based on your scenario, you have time to exercise your lien rights.

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