We provided consulting and design services for a project in California and we haven't gotten paid. Construction is about to get started. We've already filed a Notice of Intent to File a Lien. What is our next step?
7 replies
Sep 5, 2019
Good morning,
Assuming you have complied with all the prerequisites (including the notice to owner of default under the contract), you could theoretically move forward with a design professionals lien. However, once construction commences, you may not record a design professional lien and any such lien previously recorded but not foreclosed on by filing a lawsuit becomes null and void. If you know construction commencement is truly imminent, it may make more sense to record a mechanics lien instead.
If you get wind that construction is not going to commence for whatever reason, you must record a design professional lien no later than 90 days after you know or have reason to know that the project will not be commenced.
Note: “Commencement of the work of improvement” as referenced in our Civil Code is not defined and, sometimes, disputes can arise as to when “commencement” occurred.
I hope this helps.
Best,
CN
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Sep 5, 2019
What is the difference between a design professional lien and a mechanics lien?
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Sep 5, 2019
Design professionals lien are generally used when construction may not actually commence. The two liens are similar and, in fact, a design professionals lien can be converted into a mechanics lien after commencement of the project by following the statutory procedure.
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Mar 10, 2020
I wanted to follow-up and confirm you’ve been paid on this project matter.
If I can further assist your company with any unpaid invoices, please feel free to call or email. My firm can collect for you even when lien rights have expired or were never pursued.
Mike Ross
Miller, Ross & Goldman
mross@mrgpartners.com
(512)275-6412 Direct
https://www.mrgpartners.com/levelset
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Nov 9, 2021
But design professional lien does not apply to single-family homes that have a project worth less than $100k. That said if it wasn't eligible for design lien, and the project never got started, can the contractor file for mechanics lien?
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Jan 31, 2022
Interesting,thanks for the answer
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Aug 24, 2022
where do I purchase the Design Professional Lien form?