Home>Levelset Community>Legal Help>Our Client Stoped work on a whole priced project.

Our Client Stoped work on a whole priced project.

New YorkRecovery OptionsRight to Lien

We agreed to take on a renovation project for a national property management company in California, the project is in our home state of New York. The project had a scope of work with one price to do it all. The property changed hand due the renovation and we were ask to stop work. There are items that are not quit completed and the are trying to tell us they are only going to pay so much and we do not agree with the suggested amount and they are also stating the there is poor workmanship. We where on the project for a couple months with no inspection. We are not sure how to handle this but we have always done good work. There was a change order that we gave them for work that needed to be done for the home to qualify for loan like FHA etc. Some of the work that needed to be done was work that we did not complete due to the change order. Example: We did not paint 3 ceiling due to buckling drywall and the change order was to replace the ceiling, 5 interior doors needed replaced due to condition which was on change order so we did not paint them. there was a couple more items like these example. so now that they decided not to move forward we are out. Th project was ok with the whole price but now with all the missing item it was a loss to use. If we would have known we would have never taken on the project.

1 reply

Oct 29, 2018
I'm sorry to hear about that. When construction businesses go unpaid for the work they provide, leveraging mechanics lien rights often helps to compel payment. While not required in New York, sending a document like a Notice of Intent to Lien will put both the customer and the property owner (if they're different entities) on notice that payment is due and that a lien will be filed if it is not resolved soon. Mechanics liens can have a dramatic effect on property owners, so often, the threat of lien will compel payment. Of course, another option is to file a mechanics lien. While it should never be a first option, a mechanics lien is a strong way to compel payment - even when workmanship might be in dispute. Regarding the amount of a New York lien claim - New York mechanics liens should be limited to the amounts owed for work performed. When the contract for work provides a whole price for the entire project, a claimant should do their best to provide a good faith estimate of what amounts are owed for the portion of work which was completed. As long as estimates are accurate and made in good faith, any potential liability for a fraudulent or excessive lien should likely be avoidable. As always, a lien is only one of many potential construction payment remedies - and sometimes, other options may be more effective.
0 people found this helpful