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what should my first furnishing date be when i submit the file to Levelset?

We engineer how concrete pieces would be made if the job comes to fruition. We have a letter of intent that allows us to proceed with Engineering Drawings. Should the job never come to fruition, my opinion is we cannot file a lien on the project where we have no tangible personal property. My ultimate question is what should my first furnishing date be when i submit the file to Zlien/Levelset? My opinion is once we have constructed product and ship to the job site. We also construct concrete pieces that are on our property where we have issued a bill of sale to the Owner/GC so we can be paid for such. Should the Owner/GC refuse to pay, do we have a lien claim for these items that have not shipped to the site?

1 reply

Apr 30, 2019

That's a good question. While I'm not able to advise you on how to enter specific data on Levelset, I can provide some information regarding lien rights and Georgia's lien and notice requirements that should help shed some light on the issue. First, lien rights arise due to work being performed or materials being furnished and real property being permanently improved as a result. In a situation where some drafting or design work is done for a project, but no work is ever performed to improve the property, lien rights won't arise since the property isn't actually improved. Regarding exactly when specially fabricated materials are considered actually "furnished", generally, specially fabricated materials will be treated much like other materials - so first furnishing is typically when the materials are actually furnished to the job site. Finally, regarding materials fabricated or manufactured but not delivered, some states provide the ability to file mechanics liens for materials that are manufactured or fabricated specifically for the project at hand, but not delivered. This makes sense - where materials won't be easily resold or reused on some other job, allowing the payment security of a mechanics lien may be necessary. However, based on Georgia's lien statute, it does not appear that materials created but not actually delivered to the job site are lienable. Keep in mind, though, that sending preliminary notices, and even sending lien warnings or threats can still be extremely effective to avoid payment issues. For one, preliminary notices jump start communication and collaboration on projects, and we've found that when preliminary notices are properly utilized, payment problems can typically be avoided. But, when payment issues are coming into play, sending a document like a Notice of Intent to Lien can be effective to speed up payments, regardless of whether a lien claim could or would be filed. Because mechanics liens are such a drastic remedy, owners and prime contractors don't take the threat of lien lightly. More on that idea here: What is a Notice of Intent to Lien? Further, when payment can't be recovered via lien, there are always other options for recovery. For more on Georgia's lien and notice rules, this resource should be valuable: Georgia Lien & Notice Overview.

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