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Does an NOC shorten the deadline of subs still working?

CaliforniaLien DeadlinesNotice of Completion

If we are still working after a Notice of Completion is filed, are lien rights extended? It's contract work that doesn't affect the ability to occupy the building so the NOC was filed because there was a date it needed to be filed by for loan purposes. Temp CO has been issued as well. Do we have the same 30 days to file the lien as everyone else?

1 reply

Apr 8, 2020
California's mechanics lien deadline is based on the completion of the project, but will be shortened if a Notice of Completion or Cessation is filed. Once a Notice of Completion is filed, the deadline for subs and suppliers to file their lien claims will be 30 days after that filing. If a Notice of Completion was filed pretty early by a contractor or the owner - that can put subs in a tough position. Certainly, it's preferable to resolve disputes without lien claims. But, lien deadlines are unforgiving - and once the time to file a lien passes, then a mechanics lien is no longer on the table as a recovery option. And, there's nothing in the California Civil Code's lien laws that'd seem to extend the lien filing deadline - even in a unique situation such as the one described above. When your lien deadline is coming up quickly - it might be useful to mention that to your customer or others on the project (like the GC, a project manager, etc.) to try and agree on another option for securing payment - like using a promissory note, personal guaranty, etc. But, if need be, keep in mind that mechanics liens are generally the best option for securing construction payments. It's generally a good idea to not pull the trigger on a lien too quickly, but if others on the job have forced your hand with a shortened deadline that may be necessary. Crucially, though - keep in mind that a California sub can't file a lien until after they've ceased their work. So, if a lien filing will become necessary, it's critical to stop work and to notify others of that work stoppage before deciding to proceed with a lien claim.
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