There is a project that we completed in 2018 that we have not been paid for. One pay application is 202 days old and the other is 383 days old.
We did not file a notice to lien agent when the job started. Are we still able to file a lien?
1 reply
Dec 13, 2019
North Carolina mechanics liens have strict notice and deadline requirements, much like other states. And, if the notice and deadline requirements are not strictly followed, claimants will typically be unable to file a valid and enforceable lien claim.
North Carolina's preliminary notice requirements
To preserve the right to lien, a North Carolina claimant must send a Notice to Lien Agent within 15 days of first furnishing labor or materials to the job. Failure to send this required notice will likely result in the loss of mechanics lien rights.
For more background on North Carolina's preliminary notice requirements:
- North Carolina Preliminary Notice Guide and FAQs
Recovery options other than filing a mechanics lien
Of course, keep in mind that there are always recovery options outside of the mechanics lien process that can be helpful for payment recovery. We'll explore a few options below, but this resource should be valuable: Can’t File a Lien? Here Are Some Other Options For Recovery.
Invoice reminders
For one, something as simple as an invoice reminder can be helpful in getting paid. Invoice reminders are exactly as they sound - they remind the customer that payment hasn't yet been made on the particular invoice or invoices. They serve as a nudge in the right direction - and sometimes that's all that is necessary to get paid.
Demand letters
Escalating things a bit by sending a payment demand letter can get the job done, too. A demand letter reminds recipients of the debt as well, while also asserting specific legal threats that will be undertaken if payment isn't made. Ultimately, demand letters let recipients know that the claimant is serious about getting paid and willing to do what it takes to obtain payment.
Legal tools for recovery
Finally, keep in mind that legal tools will likely be available to a construction business who's gone unpaid for their work. Breach of contract claims, claims under North Carolina's prompt payment scheme, and other claims might be available to those who have performed work but gone unpaid.
To discern what legal claims may be available, it would be wise to consult with a local North Carolina construction attorney. They'll be able to review your project documents and other circumstances, then advise on how best to move forward with a claim.
What's more - for claims under $10,000, North Carolina small claims court may provide an option for streamlining payment claims.