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How can I file a lien when my contract is with the contractor who performed work for the owner.

KentuckyDesign Professional

I am a professional engineer who designed and stamped a set of construction plans for a retaining wall that was constructed by a contractor who was himself contracted by the owner. My contract was with the contractor who did the wall construction and I have not been paid. My question is can I file a lien against the contractor? If not, then what recourse do I have? Thanks

1 reply

Sep 20, 2019
In Kentucky, licensed engineers will have the right to file a mechanics lien - but only if they've been hired directly by the property owner (pursuant to KRS § 376.075(3)). But, mechanics liens aren't the only way to recover payment, and pursuing some other option may be helpful. Levelset has actually written an article on this topic before: Can’t File a Lien? Here Are Some Other Options For Recovery. Still, let's take a look at some detail here. Sending a demand letter may lead to payment Sending a payment demand letter can help speed up payment. By threatening legal action, a claimant can show their customer that they're serious about recovering payment. And, considering no contractor wants to be tied up in legal claims regarding their project - particularly where they have caused the issue by failing to make payment - a demand letter might grease the wheels. More on that here: Demand Letters for Contractors – How To Write One That Gets You Paid Pursuing legal action Mechanics liens provide a much cheaper and more efficient method of making a payment recovery claim, but when they aren't available, all of the normal remedies which apply between two businesses will still be present. So, resolving an issue via legal claims will be on the table. For instance, when a contractor has failed to make payment, as required, they're likely in breach of their contract. So, pursuing legal claims, such as a breach of contract action, might be an option. Also, while litigation can be particularly costly, time consuming, and risky - pursuing an action in small claims court can help alleviate much of the cost and time concerns. Though, an action in Kentucky small claims court can't exceed $2,5000. Other legal claims may also be available - and, if it looks like payment isn't coming, it might be helpful to consult a local construction attorney about how best to recover payment in your situation. They'll be able to review your contract and other circumstances and advise on how to proceed.
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