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How to protect ourselves from an unreasonable lien

New MexicoLien Waivers

We are a real estate developer/architect/owner of a spec project and a sub-contractor (cabinet/countertops) did not complete job by deadline and has been paid in full on American Express. We had a written agreement if they did not complete by a specific deadline they would incur a $10,xxx penalty plus $1,000 per day until complete. Still have not finished. 47 days past deadline, fired them and opened dispute for the $58,000 in penalties with American Express. Now they are threatening a lien on the property. They say they want to complete the job, so I want to have them sign a lien waiver and agree on new deadline of end-of-next-week and if they fail to complete the job by then, the original penalties in full are owed to us and they will not file a lien. Since they've been paid in full, I pulled the Unconditional Lien Waiver from your site. Is that the proper form and should I have them execute any other documentation? Do I have recourse with the board of contractors for shoddy and incomplete work? Are there ramifications for them filing a lien without just cause?

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