Home>Levelset Community>Legal Help>we completed work on a Public works project in CA, We have only filed a Notice of intent to file lien. what is the next step? do we have to file a stop notice, or notice of completion first before filing a bond claim?

we completed work on a Public works project in CA, We have only filed a Notice of intent to file lien. what is the next step? do we have to file a stop notice, or notice of completion first before filing a bond claim?

we did work as a sub of a sub on a CA public works project. LAFC Soccer Stadium. No notices were ever filed from the start of the project. We have only filed the Notice of Intent to file lien because we are owed $400K. not sure how to go about filing a bond claim so we can get paid.

1 reply

Jul 18, 2018

That's a good question, and I'm sorry to hear that you remain unpaid. First, it's worth noting that on public projects, mechanics liens may not be filed - instead, as hinted at above, a bond claim would be the more appropriate remedy. Since a mechanics lien filing would likely not be a potential remedy, the value provided by sending a Notice of Intent to Lien is diminished - essentially, it becomes more or less an empty threat. However, a Notice of Intent to Make a Bond Claim (available here) acts similarly to a Notice of Intent to Lien, but for public jobs where a bond is present. Regardless - if a Notice of Intent isn't effective to compel payment, a claimant has some other options. First, a claimant can utilize a more formal demand letter threatening specific legal actions such as a breach of contract action or a claim for unjust enrichment. Sending demands via an attorney's letter can be particularly effective. If demands don't work, typically, a bond claim or a stop payment notice might be an option. However, the availability of a bond claim or a stop payment notice will depend on the claimant's role on the project. Specifically, unless the claimant was hired directly by the original contractor, preliminary notice must be sent at the outset of work to preserve the right to make a bond claim or to send a stop payment notice. When a subcontractor has failed to send required preliminary notice, a bond claim or stop payment claim cannot be validly filed. Of course, a claimant can always file a lawsuit for unpaid amounts if a Notice of Intent or demand letter doesn't work. While litigation can be costly and unpredictable, it's probably better than the alternative: nonpayment.

0 people found this helpful

Helpful