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What does our lien attach to and does our sub have lien rights?

We are the GC on a private commercial project in DC. Our contract is with the lessee of a portion of a mixed use property. We are on a 3 week pause due to non payment of our client. We have approx. 2-3 weeks of Tentant Improvement work that remains and our millwork sub is holding their product ready for install at their facility until told to remobilize. If we as the GC lien, will the lien attach to the property or just to lessee's interest in the property. Also, as our sub has their millwork package complete and ready, but stored at their facility, do they have lien rights as well?

1 reply

Apr 16, 2020

When work is being done for a tenant in Washington DC, mechanics lien rights are generally limited to the tenant's interest in the property. So, if work has been done for the tenant, rather than the fee owner, of the property - then lien claims will likely be limited. Granted, if the fee owner authorized or required those improvements, there's a chance lien rights would be available against the fee owner's interest. Further discussion here: What Happens to Mechanics Lien Rights If My Project is a Tenant Improvement? Regarding specialty materials - generally, specially fabricated or manufactured materials will only be lienable when they've actually been incorporated into the project. There are some states with exceptions to this rule of thumb, but based on Washington DC's mechanics lien statute, it doesn't appear that mechanics lien rights would be available for materials not actually delivered or incorporated. For more clarity on that point, though, it'd be wise to consult a Washington DC construction attoney. Finally, keep in mind that there are always recovery options outside of the mechanics lien process that could be useful for getting paid. Further, demand letters and threats of filing a mechanics lien could even lead to payment without having to file.

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