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Home>Levelset Community>Legal Help>What are my options to collect from my client? I'm an Architect. Contract is directly with client.

What are my options to collect from my client? I'm an Architect. Contract is directly with client.

CaliforniaCollectionsDesign ProfessionalNotice of Intent to LienPrompt PaymentRecovery OptionsSlow Payment

The owner hired me to do architectural plans for a house she bought - included extensive remodeling and additions. We have a simple contract. We got retainer/deposits in January and commenced work with scans and as-built plans, CAD drawings (using 3D software) and then a series of schematic studies. She brought in an interiors person (actually an IKEA specialist) - even though I had an associate interior designer working on it. Every time we met she had changed her mind on things - which is fine, just made it challenging to satisfy her stated and desired fast pace. After 6 months and several versions, she stopped communicating, then finally stated she had run into another architect and was working with her. I said that was fine but she needed to square up with us - then we could provide all the CAD files and go our separate ways. In early July, I provided an invoice for some $3K worth of services (in addition to the deposit received that covered my time and that of my interiors person and CAD tech) and 4 days later emailed to ask when I might expect payment as I needed to plan finances. Terms per contract are "payable upon presentation of invoice". She wrote back telling she thought it was weird that I wanted to be "paid immediately" after 6 months of no billing. Anyway - communication has been non existing since then, and continued Emails and calls (all polite and professional) have gone unanswered. I ran into her at a function - she said she didn't know who I was (then suddenly remembered) and mentioned she would take care of the bill. I followed up with another Email and - nothing. About 2 weeks ago I sent an Email reminder that our agreement also states a 1.5% per month late fee which I would waive if she paid in 10 days. That passed. So - I need to know my options. We started in January, I billed in July, it's now October... I should mention that she is a retired attorney for the State of CA - so she probably knows what she's doing which is what concerns me. I'd rather not have to resort to Small Claims court, which might be my only option. I did not file a preliminary notice.

3 replies

Oct 11, 2019
In California, design professionals have two distinct options for recovery if they wish to pursue the "lien route" to getting paid. There is the regular mechanics lien, with its general rules and requirements with respect to notice, timing, service, etc. And, there is a "design professionals lien" which is available to licensed design professionals provided certain circumstances are met. With respect to a general mechanics lien, parties who contract directly with the property owner only need to send a preliminary notice to the construction lender, (if any). If there is no lender on the project, a direct contractor is not required to provide a preliminary notice in order to retain lien rights. The lien itself must be filed within the earlier of 90 days from the completion of work as a whole, or 60 days from the date on which the owner filed a notice a completion. A specific guide to filing California mechanics liens can be found here. Or, you can make the process easy by completing it online. A design professional's lien is available when a building permit (or governmental approval) has been obtained with respect to the design professionals work, and each of the following circumstances are satisfied: "(a) The work of improvement for which the design professional provided services has not commenced. (b) The landowner defaults in a payment required under the contract or refuses to pay the demand of the design professional made under the contract. (c) Not less than 10 days before recording a claim of lien, the design professional gives the landowner notice making a demand for payment, and stating that a default has occurred under the contract and the amount of the default. (d) The design professional records a claim of lien." This type of line must be filed within 90 days from when the design professional knowns or has reason to know the work of improvement will not be commenced. Also, as you have mentioned, there is always the litigation route to recovery, as well. Small claims court is a potential way to keep legal costs down, but as parties are not represented by attorneys it is worth deciding whether that is the best path forward if the adverse party is an attorney. Since court is always the last resort, there are also options to attempt to recover through an outside collections firm, as well.  
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Oct 11, 2019
In California, design professionals have two distinct options for recovery if they wish to pursue the "lien route" to getting paid. There is the regular mechanics lien, with its general rules and requirements with respect to notice, timing, service, etc. And, there is a "design professionals lien" which is available to licensed design professionals provided certain circumstances are met. With respect to a general mechanics lien, parties who contract directly with the property owner only need to send a preliminary notice to the construction lender, (if any). If there is no lender on the project, a direct contractor is not required to provide a preliminary notice in order to retain lien rights. The lien itself must be filed within the earlier of 90 days from the completion of work as a whole, or 60 days from the date on which the owner filed a notice a completion. A specific guide to filing California mechanics liens can be found here. Or, you can make the process easy by completing it online. A design professional's lien is available when a building permit (or governmental approval) has been obtained with respect to the design professionals work, and each of the following circumstances are satisfied: "(a) The work of improvement for which the design professional provided services has not commenced. (b) The landowner defaults in a payment required under the contract or refuses to pay the demand of the design professional made under the contract. (c) Not less than 10 days before recording a claim of lien, the design professional gives the landowner notice making a demand for payment, and stating that a default has occurred under the contract and the amount of the default. (d) The design professional records a claim of lien." This type of line must be filed within 90 days from when the design professional knowns or has reason to know the work of improvement will not be commenced. Also, as you have mentioned, there is always the litigation route to recovery, as well. Small claims court is a potential way to keep legal costs down, but as parties are not represented by attorneys it is worth deciding whether that is the best path forward if the adverse party is an attorney. Since court is always the last resort, there are also options to attempt to recover through an outside collections firm, as well.  
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Oct 12, 2019
Thanks so much for this. For me I think (a) best fits. What I have to determine is the date from which I realized she was no longer going to be working with me or honoring our agreement. That would start the 90 days. Maybe I can use the date of when we met in person and she told me that it was working out with this other architect and that she would not be working with us anymore. That was in early Sept. The termination clause states that she has to inform me in writing that she wants to end the agreement - but that never really came (although I repeatedly asked her to just write back and tell me the status). She never really did that, it was more implied by the "sound of crickets" ;-) I intend to send an official collection demand letter (by certified mail) to let her know I'm serious about following all avenues available to collect. I wanted to know what my options are and you have laid them out pretty well. Obviously I want to minimize any expense and time to collect - but it's the principles involved in her not following her part of the agreement.
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