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Lien Rights and Change Orders

CaliforniaMechanics Lien

We completed a project called RiCloud on 6/15/20 and we were unable to get all of our COs approved by the GC before our lien deadline expired. Due to lack of response from the GC regarding these COs, we went ahead and billed for everything and filed a lien in order to protect our rights. THis got the attention of the GC (finally) and now the GC has approved all COs and is asking that we remove the lien. We are still owed $264K on this project and we are hesitant to remove the lien with this amount owed to us. However, the lien may prevent the owner from paying the GC which would also prevent us from getting paid. Does the date in which COs are approved change anything in terms of the lien deadline? I am looking for advice in how to handle this situation. Please advise.

1 reply

Sep 12, 2020

Do not remove the lien until you are paid in full. The owner can cut a joint check to you and the GC, with an agreement that the lien gets released after the check clears. The date of the COs doesn't matter. You only have 90 days after you recorded your lien to file suit - don't miss that deadline! Feel free to call me during the week, if you like: 949 954 6666 x 101. Thanks, Andrew

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