I'm a GC working on a residential home remodel. We had an initial contract that the homeowner signed and has made partial payment on. Since we started working, there were added jobs the homeowner asked us to do. We got approval for everything but mostly on the phone. We never did any work without the homeowner's approval and most of the time we were able to give them a quote for how much the added job would cost. They suddenly took an issue with some of the added job amounts and told us to stop working. Most of the jobs were either complete or mostly complete. Now they want to pay us half of what we're owed and this includes not paying us for unfinished jobs (which are mostly done but we had to stop when the homeowner asked us to). We sent an email containing a total amount owed and the homeowner said they'll leave everything up to the mediator. I'm not sure what that even means. I work hard and have never had a homeowner do this. I understand I'd have to prepare a lein and file it with the county. Just want to make sure I'm not missing anything. My partner and I did most of the work but we had a subcontractor do some electrical work. Would I only list the electrical sub in the sworn statement or should I also include all the work we/GC did? And assuming we get a lein, what's next?
Complete the claim of lien form using the entire contract, including the subs. There is a spot for total contract amount, total payments to date and total still due. Follow the instructions that are on the form. The lien form must be filed within 90 days of the last day you provided materials or labor on the job, or it is not valid.
After that, you have choices. The lien is only in place for one year from the date you file it with the county register of deeds. So, if you want to enforce your lien, you must file a lawsuit to foreclose on the lien before it expires.
You also have the right to sue for breach of contract. You have six years, from the breach, to bring that lawsuit.
As a rule, you should file your lawsuit within one year and bring both claims, for foreclosure of your construction lien and for breach of contract.
If you are not familiar with lien forms, I recommend that you have an attorney review (or create the form for you) what you prepared, before you file it.