We're a subcontractor in South Carolina- having trouble getting final payment on a private job. The GC is not licensed but we are. Does South Carolina still offer lien protection for the vendors and subs of unlicensed Gcs?
Great question. First, as you may know, in order to file a valid and enforceable mechanics lien, South Carolina lien claimants must hold the necessary licensure if a license is required for the work being performed. This is supported by § 29-5-15 of the state's mechanics lien statute.
However, that section only requires that a lien claimant hold the appropriate licensure, themselves. It's completely silent as to whether a licensed claimant who was hired by an unlicensed contractor would be entitled to file a lien. So, because the lien statute does not specifically prohibit a licensed claimant from filing a lien when their customer is unlicensed, it follows that such a claimant could likely file a valid and enforceable mechanics lien, regardless of whether their customer is properly licensed.
Of course, it's also worth keeping in mind that the mere threat or warning of a lien filing could compel payment and help avoid all of the headaches that come with a lien filing. More on that here: What Is a Notice of Intent to Lien and Should You Send One?
For more information on South Carolina's mechanics lien deadlines and requirements, here's an awesome resource: South Carolina Mechanics Lien Overview
The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the helSee More...See More...