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Unpaid project without a prelien

We completed work on a project back in November which we have yet to be paid on. We did not pre-lien this project. However, this project is at the same location and related (but with a separate T&M agreement) to four other projects that we have submitted a pre-lien and filed a lien against. Would it hurt to combined this unpaid amount to one of the liened projects?

1 reply

May 4, 2020

When working under multiple contracts for the same job, the safest way to ensure that mechanics lien rights will be available down the line is to send a separate notice for every contract. Even where there are multiple contracts for work on the same project or property, it's possible that separate mechanics lien claims would be necessary. And, if a separate lien would be required, there's a strong chance separate notice would be required. So, failure to send notice on one of the contracts could limit lien rights.

Nevada lien rights when working under multiple contracts

As for whether a claim could still be filed - that's a tricky question. One of the biggest factors will be whether there are multiple prime contracts on the project. If the owner has executed separate prime contracts for different scopes of work, buildings, etc. - then lien rights would likely be limited. In Nevada, if there are separate prime contracts for separate buildings being erected on separate parcels - then each contract would be its own "work of improvement" and require its own notice. If all of the separate work was performed under the same overall prime contract, then one lien claim for all work done at the same property might be possible. Still, Nevada does allow a claimant to file one lien claim against multiple parcels. However, a lien claim which spans multiple properties would need to identify what amount claimed applies to which property. And, a lien claim filed on one parcel couldn't include amounts owed for work performed on a separate parcel. Rather, the amounts included in the overall lien claim would need to be divided up parcel-by-parcel. With all of that being said, though - if the work wasn't featured in any preliminary notice, there may still be an issue. Ultimately, Nevada's mechanics lien statute doesn't specifically address this situation. So, for additional clarity, it'd be wise to consult with a Nevada construction attorney. They'll be in a better position to navigate through the complexity.

Recovering payment without filing a mechanics lien

Finally, keep in mind that there are always other recovery options outside of the mechanics lien process. And, there are also less-aggressive means that could be useful for forcing payment - like sending a payment demand letter or a Notice of Intent to Lien.

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