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What are our responsibilities?

Georgia

We are a GC with a contract with a subcontractor on a project. The sub has a supplier in which they haven't paid. We as the GC did not receive a request for a NOC from the supplier. Can the supplier put a lien on the property and what are our responsibilities?

3 replies

Sep 24, 2020

In Georgia, material suppliers are included in the eligible parties that may file a mechanics lien to prompt payment owed to them . Considering you are a general contractor and not another supplier, there is no limitation on the supplier's lien rights.  

However, if a constructiion lien is filed against you, you may send a "Notice of Contest" to the claimant. This notice requires that the claimant move to enforce the lien within 60 days of the notice, or the lien will be cancelled. The prompt 60 days of notice is in comparison of the normal 365 days usually available to claimants before the lien must be enforced by suit. The sending of this Notice of Contest essentially wll shorten the validity period of the lien. 

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Sep 25, 2020
The supplier filed against the GC but did not request a NOC. The supplier is to the subcontractor not the GC.
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Sep 26, 2020

Yes, the supplier can file a lien against the property. You should make demand on the Subcontractor to pay the supplier. If necessary, you should reach an agreement with the sub to allow you to pay the supplier via a joint check made out to the subcontractor and supplier, and then have the supplier come pick up the check in exchange for a lien waiver. Your subcontract may allow you to pay by joint check or by direct payment to the supplier--if you don't have this language, you should have a construction attorney add it to your subcontract.

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