I have a client who is slow on paying our invoices for completed work. They're technically on a 30-day pay cycle but we have invoices outstanding from 2018-2019 and 2020. How do I file a lien since it's over 45 days?
1 reply
Apr 22, 2020
The deadline to file a Hawaii mechanics lien will be 45 days from project completion - but determining the completion date isn't so cut and dry.
If a Notice of Completion was filed on the job - then that will mark the completion date and then a lien claim must be filed within 45 days of the Notice of Completion filing. But, if a Notice of Completion was not filed, then the improvement is actually considered complete one year after substantial completion - then a lien must be filed within 45 days of that date. So, it's important to keep those timeframes in mind when assessing whether or not a mechanics lien will be filed.
If the deadline to file has come and gone, then a mechanics lien cannot be filed. Still, other recovery options might be useful, like sending invoice reminders or demand letters, as well as pursuing legal claims such as breach of contract or a claim under the Hawaii prompt payment laws. Sending a debt to collections could be an option, too.
For more information on Hawaii mechanics lien claims, deadlines, and more: Hawaii Mechanics Lien Guide and FAQs.