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What determines date project completed for Lien Deadlines

CaliforniaMechanics LienNotice of CompletionRight to LienSubstantial Completion

We build swimming pools and as the general contractor take out the building permit for the project. Five months ago the project was completed as far as construction was concerned. However, the renter at the building project has not allowed the city inspector to make a final inspection for the job. Does this fact play the project in "not completed" which would allow use to lien his property, or would the final work on the project be the determining date.

1 reply

Dec 4, 2019
Determining when, exactly, a California construction project will be considered "complete" is an inexact science. Coming up with a completion date may require a somewhat-complex analysis, as Levelset discusses in this article: California Mechanics Lien Law: When Is A California Construction Project Substantially Complete?

Determining completion on a California construction project

There are a few different ways to calculate completion for the purposes of sorting out the deadline for filing a California mechanics lien claim.

Was a Notice of Completion filed?

First, it might be helpful to determine whether a Notice of Completion or Cessation was filed for the project. If one was filed, then the deadline to file a mechanics lien would run from that filing - and a lien would have to be filed within 60 days of that filing. For more on how to find out if one was filed: How Do You Know If a Notice of Completion Was Filed on a Project?

Other dates that would trigger "completion"

§ 8180(a) sets out a few different dates which would trigger a project being considered "complete." As you may know, a California general contractor must file their lien claim within 90 days of completion if no Notice of Completion or Cessation was filed. A Project has reached completion at: (1) actual completion of the work of improvement; (2) occupation or use by the owner which is accompanied by a cessation of labor; (3) cessation of labor for a continuous period of 60 days; or (4) recordation of a Notice of Cessation after 30 continuous days without labor.

Bottom line

In a situation where work has been complete for months and no labor has been undertaken during that time frame, there's a strong chance that the window for filing a mechanics lien claim has closed. Of course, keep in mind that there are other options, including invoice reminders and payment demand letters, which could be helpful for recovering payment. Levelset discusses some of those other options here: Can’t File a Lien? Here Are Some Other Options For Recovery.
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