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Is my "Consultant / Fee Agreement" a valid service in order to file a lien?

I bid on a commercial solar project in San Diego Co. After my bid was rejected, I introduced another contractor with whom the owner accepted and entered into contract 11/2018. Said contractor provided me a consultants' / finders fee agreement with payment of $70,000, paid as bank disbursed funds.At this point I've received about $9,000 and contractor is in dispute with bank lender. Not sure if contractor can finish the project. Bank has committed 1.72mm and has disbursed $350k. Project is way behind schedule, lender is being threatening removal of contractor, owner is preparing to sue everyone in sight.

1 reply

Feb 7, 2020

Mechanics lien rights are generally only available to those who perform work which physically improves the project property but go unpaid. And, while some design services will give rise to lien rights, typically, something like a finders fee won't be lienable since it doesn't directly relate to work performed. And, I think that makes a lot of sense - mechanics liens allow claimants to secure payment for work that improves property by directly making a claim against that improved property. But, amounts that don't directly tie to the property being physically improved are a bit attenuated. For more information on California lien rights, and for more info on recovery options outside of the lien process, these resources should be valuable: - California Mechanics Lien Guide and FAQs - Can’t File a Lien? Here Are Some Other Options For Recovery

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