I am the owner of a design/build firm. We designed a finish basement for a client and although they loved the design, they couldn't quite afford it. We decided to split it up into phases. We would remediate the existing mold, build and insulate the walls; install plumbing, electrical and HVAC; install and finish drywall, prime walls, install flooring and millwork. We specifically excluded painting and the bathroom finishes as they thought they might do that themselves so save money. We postponed cabinets and appliances to phase two. We got to the end of the job (phase one) and billed them the remaining amount for that contract. They replied back that they felt like the drywall needed to be touched up. We explained that we typically touch up the walls just prior to painting because they can become damaged more easily since they are not protected by paint. I also realized that some of the pictures she sent me resembled pics i took of damage caused their HVAC contractor. I told her no matter what I want to come out there and look at it. Anything we could do we would do. She responded and said don't come, I've hired another contractor to do it and I no longer feel obligated pay you. Our written scope of work was done as promised, and I think it was done exceptionally well. Even so, we did reassure her that if there were issues with the promised work, we would it definitely address it. I could not confirm nor deny the claim that the drywall needed touchups. I believe I am entitled to be paid for services rendered. I also believe I had a right to address any issue that may have been present. I have already delivered my intent to file a lien 12 days ago. Should I continue down this road?
Assuming your contract included the required pre-lien notice and you’re still within the time deadlines mandated by law for perfecting your lien by filing the statement, you are likely entitled to a mechanics’ lien for the value of the actual work you performed and for which you have not been paid.
Minnesota does not require a Notice of Intent to File a Lien.
Neither party has the right to cancel a contract or change the scope or price without a change order signed by the other party. It is not clear whether the work comprising “phases” that have not been performed are part of the scope of work or merely aspirational tasks that might be added later. I’d need more information to know whether the hiring of another contractor was a breach of your contract.
Final thought. A mechanics’ lien is a great tool to assist in collecting money, but like any tool it works best when used properly and for the right job. There are many ways to collect your money and many circumstances in residential remodeling where the mechanics’ lien is not your best tool. You should consult with an attorney knowledgeable in construction collections before assuming the mechanics’ lien is right for this situation.