We never preliened this job and we haven't been paid since December. Justin suggested sending a notice of intent but how can I do that when we never sent them a preliminary notice. The GC is saying because of corona virus payment has not been seen.
2 replies
Apr 22, 2020
If you did not send a preliminary 20-day notice telling someone you intend to lien the property is not going to do much good because you do not have any lien rights. You still have the option of filing a lawsuit. However, you will want to take a good look at the terms of your contract to see if there is a "pay when paid" or "pay if paid" clause in there before you decide whether a lawsuit is a good idea
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Apr 22, 2020
I have a slightly different opinion here. While you may not have the right to file a lien, there may be some benefit in sending a notice of intent to lien. It's entirely possible that the notice of intent to lien pushes the other party to begin talking to you. They may not realize you needed to send a preliminary notice, and therefore, may think you actually do have lien rights. This could help you get this thing resolved before escalating it to a lawsuit.
But, to the extent that the receiving party is wise to your lien rights, it may turn out to be an empty threat. Unlike Joseph's perspective, though, I think it's an easy and safe way to escalate the conversation.
Finally, this situation is an excellent example of why it's always smart to send preliminary notices. You never know when you're going to need it...which is especially true now and moving forward into the new economy.