I have a company that is saying that the quality of work done isn’t to there standards. I’m not the only subcontractor there using this reason for not paying with. Can they avoid the mechanics lien by using this tactic?
1 reply
Dec 17, 2019
It's relatively common for a customer to try and argue that the quality of work isn't up to par in order to avoid making full payment. However, keep in mind that mechanics lien rights are generally available even when a customer is disputing your workmanship or what you're owed. Honestly, those two situations are some of the most common root-causes for lien filings.
If there truly is some issue with the work, and if full payment isn't actually owed as a result, then that issue can be resolved via the payment dispute if things come to that. But, when there isn't an apparent reason for the withholding, a customer can't simply use vague critiques of the work to justify withholding funds. So, it may be helpful to ask a customer to specify what issue, exactly, is causing them to withhold payment - that way, the customer can't hide behind the vagueness of their claim.
With the above being said, keep in mind that there are other options that can help with payment recovery before jumping straight into a mechanics lien filing. Sending a demand letter or even a Notice of Intent to Lien could lead to payment before a mechanics lien filing becomes necessary. Plus, considering Colorado is one of the few states which actually requires a Notice of Intent to Lien, the notice will tend to be taken more seriously in Colorado.