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What is the law regarding what percentage of work that can be liened for non payment by a general contractor

CaliforniaMechanics Lien

We have a master contract to do 87 homes for flooring. In the middle of the work, the GC ran out of money and did not pay. We liened for the amount of the 8 homes, we were in the middle of installing at the time of default by GC. Was that a reasonable approach? thanks,Marshall

1 reply

Sep 18, 2019

Hello Marshall, A lien claimant is able to record a mechanics lien for the contract price or reasonable value (whichever is less) of the labor and materials furnished and incorporated into the project. You will not be able to lien for lost profit or work that has not been performed, but that could form the basis of a breach of contract lawsuit depending on your subcontract terms and conditions. ---CN

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