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Lien on building by 4th tier sub-contractor - urgent!

North CarolinaMechanics LienPayment DisputesRight to Lien

Hi, we are an artist studio , who has been hired by a consultant firm (CLIENT) to provide an artwork for a developer ( OWNER) for a project in North Carolina. We have provided design work and have hired a GC to fabricate and install the work. The GC has himself hired a sub-contractor to install the work. The project is now substantially complete and the CLIENT is currently holding final payment subject to punchlist corrections being completed. Sub-contractor is owed payment from GC with about $50k in excess of final payment due to GC. Sub-contractor has placed a lien on the building (Subject to Subrogation Claim) and a lien on the funds of final payment. Question: 1. Is installation sub-contractor 4th tier (OWNER – 1.CLIENT – 2.US ( design firm) – 3.GC – 4.SUB-CONTRACTOR) and therefore what rights does he have as 4th tier? (Installer has omitted CLIENT from his Notice of lien and only notified OWNER, our firm and GC. ) 2.Is he legally allowed to put lien on building, if he is 4th tier? 3. Who is legally required to pay installer sub-contractor for lien claim – CLIENT, US or GC? 4. Who has the role as GC in this case? We have until tomorrow to settle the case and appreciate any quick response! Thank you! Claudia

1 reply

Dec 17, 2018
Hey Claudia! I believe I answered this question a minute ago - and you can find that answer here. If you have any further questions, please don't hesitate to ask! We try to get to them as quickly as we can.
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