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what is the worst type of lien to issue on a GC for non-pmt in excess of 100k

North CarolinaMechanics LienRecovery Options

we have completed over 100 thousand dollars in work and still have not been paid....

1 reply

Dec 4, 2018
That's a fair question, and I'm sorry to hear you've had trouble getting paid. Everyone deserves to be paid what they've earned. North Carolina is one of few states where there are multiple options when a lien claimant wants to lien a job. For one, a first tier subcontractor is able to file a lien on the underlying project property - that is, against the real estate itself. When this is done, a subcontractor can put pressure on both the property owner and their customer to resolve the payment issue. This type of lien is referred to as a "Claim of Lien Upon Real Property", and a subcontractor may need to send notice prior to filing such a lien. You can learn more about those notice requirements (as well as the lien requirements) here: North Carolina Lien & Notice FAQs. North Carolina is also home to a Notice of Claim of Lien Upon Funds, which acts to "freeze" project funds to make sure there's enough money to pay the claimant. As you could imagine, enabling/requiring a property owner to withhold payments to their general contractor can put pressure on that contractor to resolve any disputes quickly. As mentioned above, you can learn more about all of these options at the North Carolina Lien and Notice FAQ. But it's also worth noting that there may be a way to compel payment without actually filing a mechanics lien - by sending a Notice of Intent to Lien. This document has proven effective for a number of claimants because mechanics liens have such a drastic effect - which means owners and contractors are often more willing to talk deal if they know a mechanics lien is a possibility. You can learn more about that option here: What Is a Notice of Intent to Lien and Should You Send One?
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