Menu

LIEN PROCESS IN GA

GeorgiaConstruction Contract

IN THE STATE OF GA... IF I HAVE A SIGNED WORK ORDER THAT HAS EXCEEDED THE 3 DAY RESCISSION... CAN I FILE LIEN OR START PROCESS OR DO I NEED TO DELIVER THE MATERIALS TO THE PROPERTY? IF SO WHAT'S THE BEST WAY TO EXECUTE & MAKE SURE IM FOLLOWING THE RIGHT PROCEDURES? TAKE PICTURES ONCE DELIVERED, ETC?

1 reply

Oct 21, 2021

First, note that mechanics lien claims are designed to be a last resort. While the preservation of lien rights is crucial, and while leveraging lien rights can help to speed up payment or put pressure on a customer or owner - the actual filing of a lien is typically reserved for situations where the lien deadline is closing in and the dispute doesn't seem to be fixable.

With that in mind, let's look at the timeframe for sending preliminary notices in GA. As mentioned in our Georgia Preliminary Notice FAQs, the deadline for sending a GA preliminary notice is 30 days from the later of (1) first furnishing labor or materials, or (2) 30 days after the Notice of Commencement gets filed. Generally speaking, sending a preliminary notice a little early is typically OK, and it's usually a much better idea to send that notice early rather than late. Still, since a lot of the required information for a GA prelim will be present on the project's Notice of Commencement, it might be a good idea to wait for the Notice of Commencement filing before sending the preliminary notice.

As for when a project becomes lienable - typically, materials should be incorporated into the project for them to be lienable. Levelset discusses that idea here: Material Suppliers: Proving Incorporation When Filing A Mechanics Lien. Looking to GA's lien statute, there doesn't appear to be anything stating that materials shipped (but not actually delivered or incorporated) would be lienable. But, once the materials actually arrive at the job site, there's likely a presumption that they've been used for the project being done there. Granted, if the customer cancels the project before the materials are actually shipped, then shipping the materials after the cancellation likely wouldn't create any lien rights.

Finally, if you're wondering about how to prove delivery was made: Taking photos at the job site could certainly help to prove that those materials were actually delivered. Or, if you're using a third party to ship those materials, that party could provide you a receipt or proof of delivery to the site. Or, you could have your customer send a proof of receipt document.

As a last note: Keep in mind that for unique and specific situations, it might be wise to consult with a GA construction lawyer. They may be able to provide better insight into GA's specific rules. For help contacting a GA lawyer: Top Georgia Construction Lawyers.

0 likes

Add your answer or comment

Not the answer you were looking for? Check out other Construction Contract topics or ask your own question