Menu

Lien Date

CaliforniaLien DeadlinesMechanics LienSubstantial Completion

Good Morning, I have a question regarding a lien we would like to file against a customer. The document number for the preliminary is 3289136. My question is, there is material and install on the job- it’s a gym. We delivered the material back in March, but then never were able to do the install since the gym was shut down. If I put in the date we last delivered, we will probably be past our lien date. What do I put in as the date, since the job is still ongoing? We want to lien the material portion at least, since they have not paid and are unable to pay. Thank you,

1 reply

Aug 11, 2020
Generally, the last furnishing date is the last date when labor or materials were actually furnished to the project. And, when the last furnishing date is truly relied upon for statutory deadlines, manipulating that date is not a good idea. It looks like this question is coming from California, though. Notably, CA's lien deadline isn't based on last furnishing at all. Rather, it's based on overall project completion. And, if the project isn't complete, then the deadline clock hasn't begun to run. Levelset discusses the difference between last furnishing and completion, here: (1) Confusing Dates: What’s the Difference Between Date of Last Furnishing and Date of Substantial Completion?; and (2) What’s the ‘Date Labor or Materials Last Delivered’ and How Can I Prove It?

When does "completion" occur in California?

The CA Civil Code creates a few different scenarios that will trigger the "completion" of the project. Levelset breaks it down in great detail, here: California Mechanics Lien Law: When Is A California Construction Project Substantially Complete? As mentioned in that article, completion occurs when any one of these events takes place: (1) Actual completion of the project; (2) Occupation or use by the owner, accompanied by a cessation of work; (3) Cessation of work for a continuous period of 60 days; or (4) Recordation of a Notice of Cessation after work is stopped for a continuous 30 days So, if one of the above events has taken place, the deadline to file a lien has begun to count down (from the date of that event).

Lien rights re: materials delivered but not actually incorporated

Finally, keep in mind that mechanics lien rights are typically limited when materials are delivered to the project site but not actually incorporated into the improvement. So, if the materials haven't been used, recovering those materials and using them on another job may be a more appropriate remedy. Levelset discusses that idea in detail, here: Material Suppliers: Proving Incorporation When Filing A Mechanics Lien.
0 people found this helpful
Helpful