The owner paid the GC in full but the GC has not paid me. No NOF was filed on the project. Would Ohio's Prompt Payment Act come into play?
1 reply
Jul 9, 2020
On Ohio residential projects, owners are protected from having to pay twice. ORC § 1311.011(B) states that an owner who's fully paid their GC won't be responsible for a subsequent lien claim filed by a sub or supplier. So, if this was a residential project - then a mechanics lien claim is likely off the table. However, it doesn't look like that same protection extends to Ohio commercial projects. So, conceivably, a lien might still be filed.
If lien claims are on the table, then a Notice of Furnishing was likely required to preserve those lien rights. Note, though, that if a Notice of Commencement wasn't filed on the project, then a Notice of Furnishing won't be required. So, it'd be worth checking to see if a Notice of Commencement was filed before giving up hope on a potential lien.
What's more - even if there's some uncertainty about whether a lien might be available, sending a Notice of Intent to Lien could be useful to force your customer to pay you what you're owed. Notices of Intent are generally sent to the GC and the owner, and the owner will likely put additional pressure on their GC to resolve potential lien disputes. Granted, if you're sure a lien isn't available, it might not be wise to threaten one. More on Notices of Intent here: What is A Notice of Intent to Lien And Should I Send One?
Recovery options when mechanics liens aren't available