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Lien ability relating to claims

South DakotaMechanics Lien

Project is located in Sioux Falls, SD. Was delayed for 1 year+ at no fault of our own (subcontractor), and is now finally substantially complete (as of 4/13/18). Contract is paid to date with exception of balance pay app for $25K, plus $12K retention. We have submitted a claim for delay damages that total $11K which GC refuses. Our question is: are we able to enforce any lien rights for our claim or are the lien rights reserved for the contract price ONLY?

1 reply

Jun 19, 2018
That's a really good question, and it's one we get fairly often. In South Dakota, as with many other states, the amount of a lien claim shouldn't include amounts such as interest or attorney fees. Rather, the amount of a South Dakota lien is limited to "the price or value" of the work provided. It's worth noting, though, that if the lien came down to an enforcement action (which is rarely the case), interest and attorney fees may be awarded to the prevailing party in a lien enforcement action. Such interest would be set at the highest legal amount allowable by South Dakota statute.
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