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What counts as work done at a home that allows me to file a lien?

I completed a water damage job at a home in July 2019. About $6000.00 and was paid. The homeowner is doing the re-build with my assistance writing the scope of work, etc. for the insurance company. (yes, he is very slow to finish the job). I am Not paid in full, he still owes $3000.00 I have not been paid the final amount yet. I did some measurements of rooms last week at the house, and will need to do more measurements and pull of and replace an outlet cover. Does the pre-lien have be filed within 10 days of work? Is measuring rooms and/ or replacing and electrical outlet cover at the house enough work to file a pre-lien? And then later file a lien?

1 reply

Mar 3, 2020

Minnesota has fairly complex pre-lien notice rules. Contractors hired directly by the property owner must generally send a General Contractor's Notice within 10 days of agreeing to provide work (not based on when the work, itself, is done) - and that can be personally given or sent via certified mail. Though that notice is often included directly in the contract, and that's a perfectly acceptable way to go about it. Very importantly, though - the Minnesota General Contractor's Notice is only required if the contractor will be hiring subcontractors and suppliers to undertake the work. So, if there's no plan to sub out the work, and if the contractor will provide the materials rather than a supplier, then the notice wouldn't be required. As for whether enough work was done to file a pre-lien - I think that's the wrong way of thinking about it. The notice can, and likely should, be sent before any work is actually performed. More on MN notices, here: Minnesota Preliminary Notice Guide and FAQs.

Recovery tools before a mechanics lien filing becomes necessary

Mechanics liens are generally considered the nuclear option for recovering payment. So, it's worth taking a look at some less-aggressive options for getting paid before landed on a lien claim.

Invoice reminders

Simple invoice reminders will often lead to payment. Sometimes, all a customer needs is to be prodded into paying what's owed. So, starting off with regular payment reminders might be a good start.

Demand letters

Some situations will call for a little more "umph." Sending a demand letter can let a customer know you're serious about getting paid and willing to do what it takes to make sure it happens. Generally, a good demand letter will include specific legal threats and a deadline for payment.

Notice of Intent to Lien

Mechanics liens are powerful, and that means the threat of a lien claim is powerful, too. Sending a Notice of Intent to Lien will put a customer on notice that they need to pay what's owed - without the headache that mechanics lien claims can bring.

Minnesota mechanics lien rights

Generally mechanics lien rights will only be available when the working giving rise to the lien results in a permanent improvement to the property. And, something as simple as measuring rooms might not give rise to mechanics lien rights since it doesn't improve the property. On the other hand, doing electrical work and installations might - though, if only an extremely small amount of work was done on that front, lien rights might not make much sense there. Over the years, though, there's been some turmoil over what constitutes lienable work in Minnesota. So, it wouldn't be terribly surprising to see that go one way or the other. For further discussion on Minnesota mechanics lien rights: (1) Minnesota Mechanics Lien Guide and FAQs; and (2) How to File a Mechanics Lien in Minnesota – Step by Step Guide Walkthrough.

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