I'm a GC and I was hired by the tenant to do retail tenant improvement work. We have not been paid for the work and I want to file a lien against the tenant. Am I allowed to file?
1 reply
May 8, 2020
New Hampshire's mechanics lien statute doesn't provide much guidance regarding mechanics lien rights for tenant improvements. So, it seems as though NH will follow the general rule applicable in most states: Mechanics lien rights for tenant improvements will typically be limited to the tenant's interest in the property (i.e. a lien could be filed against the lease).
Generally, the only time a lien will be available against the owner's interest in the property is if the owner is involved in the improvement in some way. So, if the lease requires that the tenant improve the property, or if the owner was involved in the project in some other way, then lien rights may be available against the owner's title, too.
Levelset discusses that in detail, here: What Happens to Mechanics Lien Rights If My Project is a Tenant Improvement?
Recovering payment without filing a mechanics lien
There are a number of different ways to get paid without having to file a mechanics lien. For one, sending simple (but formal) invoice reminders may be enough to prod the customer into paying what's owed. Alternatively, turning up the heat some and threatening legal claims via a payment demand letter could lead to payment too. Or, sending a Notice of Intent to Lien to both the tenant and the owner might push the tenant to pay what's owed. Owners won't want to deal with mechanics lien claims against their property - and they can apply pressure on their tenant to pay their bills.
Finally, even if a lien claim isn't the right recovery tool for you - traditional legal claims, small claims court, and sending the debt to collections could all lead to payment. And, consulting with a New Hampshire construction attorney could help to clear up what options make the most sense in your situation.