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The proper lien steps, I have a special issue

Contracted with a customer on 6/10/19 last year, at the end of the project, this customer filed a claim with the CA CSLB, they started their investigation, the investigation ended 6/16/20 - Work modifications had to be done and they were finished. The customer has paid all but $23,058.62 I sent her an invoice to pay yesterday and of course, she ignored, so I want to file a lien but also give her lien releases for the monies she has paid. Just need a little guidance so she can understand that this is now a collection issue and that she could be in trouble if she don't pay.

1 reply

Jul 7, 2020

In California, the deadline to file a mechanics lien is based on project completion. So, your situation is a unique one - identifying when, exactly, the project was considered complete will be important. If the CSLB investigation stated that additional work was to be done, and if that work was actually performed, then the deadline to file a lien would seemingly be based on the completion of the final work on the job. Generally speaking - a CSLB investigation won't extend the timeframe to lien, all by itself. But, the need for additional work on the project might restart the lien clock (as long as substantial work was done). Still - this situation is quite unique, so before opting to pursue a specific course of action, it might be a good idea to consult with a local California construction lawyer. Note that simply threatening to file a mechanics lien claim, by sending a Notice of Intent to Lien, might be effective all on its own. Mechanics liens are a serious recovery option, making the threat of a lien claim serious, too. Generally, that's something an owner won't be able to ignore. More on that here: What is A Notice of Intent to Lien And Should I Send One? Granted, before diving into a Notice of Intent, many claimants prefer to start with a simple invoice reminder: How Invoice Reminders Help Contractors Get Paid Faster. Finally, regarding waivers: Offering to submit lien waivers for work already done could be a sign of good faith and help nudge the owner toward making payment. To the extent you've been paid - lien rights won't exist for those amounts anyway. So, offering up lien waivers for that prior work might not really be altering your rights much.

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