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Need authority for creating a stipulation to exceed the 90 day lien filing requirement in IN

Anonymous Contractor

days away from a closing where construction management company will be paid $200,000 for 3 subconctractors owed money for product and CM fees. CM company pushing a hard bargain and about to file a lien a few days before closing. We want to curtail that from happening for a number of reasons (mucking up the works!). ATty for CM says no authority for lien extension . . How can work around this? Ideas? thanks Mitch

1 reply

Matt Viator

Construction Lawyer

Levelset Admin at Levelset

| 1,000 reviews

Sep 24, 2019

Most states' mechanics lien statutes, including Indiana's, do not provide the ability to extend the deadline to file a mechanics lien. However, when the prospective lien claimant and the property owner are willing to cooperate, there are generally alternatives to mechanics lien filings. In fact, we discuss a number of those in this article, which is focused on workarounds for lien claims: Don’t Want to File a Mechanics Lien? Here Are 5 Other Options As set out by that article, something like a promissory note, settlement agreement with a confession of judgment, or personal guaranty can help assure the would-be lien claimant that payment will be made. It's natural to want to file a lien before the opportunity passes, but the claimant will likely be more open to foregoing that right if there's some structured agreement that guarantees payment beyond just a contract. So, even if one of the above options doesn't fit your situation particularly well, it might be helpful to ask a would-be mechanics lien claimant what assurances - outside of a lien claim - would make them comfortable enough about receiving payment that they would forgo their lien claim. Ultimately, if they've been going unpaid, their cooperation will likely be necessary to avoid a lien claim.

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