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How can I file for a Mechanic Lien if I performed labor on a construction project and didn't get paid?

New YorkMechanics Lien

I worked extensively on a project and provided labor as a project manager essentially managing the entire project as main point of contact, hiring contractors, purchasing materials, managing site, payroll etc, essentially an unofficial contractor as I don't have a general contractor license. I have an agreement in place with he client and I have not gotten paid and would like to know if I would be able to file a mechanic lien.

1 reply

Jan 15, 2020
Mechanics lien rights are generally available to those who perform construction or construction-related work that results in the permanent improvement of the project property. So, in order for lien rights to arise, there must typically be some physical improvement that results from the would-be claimant's efforts. But, at the same time, the value of coordinating work is lienable to some degree considering that's a lot of the value that general contractors bring to projects, themselves. This can be a tough balance when determining if a project manager will have lien rights - which Levelset discussed here: Can Construction Managers File Mechanics Liens?

Who can file a New York mechanics lien?

As for who, exactly, can file a lien in New York - the state provides mechanics lien rights pretty broadly. However, in order to file a lien claim, the claimant must be licensed if the work they do requires licensure. From what I can tell, New York project managers need not be licensed in order to help on a project. But, I'm not an expert on New York's licensing rules. Plus, if GC functions were performed, there's always a chance that some of the contractor licensing requirements might apply to some work that was undertaken. For a little more discussion about who's entitled to file a New York lien: Who can file a New York Mechanics Lien?

Recovering payment before a lien becomes necessary

Of course, keep in mind that there are a number of recovery tools that can help to get paid before a mechanics lien filing becomes necessary. Let's break down a few of those...

Invoice reminders

Invoice reminders serve as a pretty gentle reminder that payment is owed and outstanding. Sometimes, though, that little nudge is all that's needed to get a customer to pay what's owed. More on that here: How Invoice Reminders Help Contractors Get Paid Faster.

Demand letters

Sending a payment demand letter can escalate things a bit in order to force payment. A demand letter will generally include specific legal threats and put a hard deadline on making payment. And, since nobody wants to deal with legal claims or lien filings, threats demands can go a long way to get what you're owed.

Notice of Intent to Lien

As you may know, mechanics liens are extremely powerful, and as a result, the mere threat of a lien filing will oftentimes be enough to force payment. Sending a Notice of Intent to Lien to the customer will let them know that if payment remains outstanding, then a mechanics lien will soon be filed. And, because of the nature of these claims, owners will usually want to do what they can to avoid a lien claim - particularly when that means simply making payment, as promised. Further discussion here: What Is a Notice of Intent to Lien and Should You Send One?

Other recovery options

Finally, if you decide that a mechanics lien might not be the most appropriate recovery option for you, keep in mind that other legal claims - like breach of contract - could be available. And, consulting with a New York construction law expert could be helpful to determine how best to proceed with legal claims. What's more, for smaller debts, taking things to New York small claims court could be an option for streamlining things, too.
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