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What's next?

My boss did an estimate for repairs to a home after the home suffered damage due to a hurricane. The agreement between my boss and homeowner was that the homeowner was paying for a professional estimate for the damages and repairs that were going to be needed. The estimate was completed and sent to the homeowner. As of today, the homeowner still has not paid, and we received that the filing due date passed for a lien, (3-23-20) was last meeting for estimate. What can we do now?

1 reply

May 14, 2020

Mechanics lien rights generally won't be present if only an estimate has been given. So, the mechanics lien deadline shouldn't have much of an impact if an estimate was given but no work was performed. With that being said, it doesn't mean that payment isn't owed, and it doesn't mean that other recovery options won't be on the table. For one, sending simple invoice reminders can push an owner to pay what's owed. No one likes having bills outstanding, and formal reminders may be enough to get paid. Or, turning things up a notch or two by sending a payment demand letter could be effective, too. A strong demand letter will threaten potential legal claims (like breach of contract) and put a deadline on when payment must be made. If reminders or threats don't work, then pursuing claims may be useful. Small claims court should be an available option for smaller claims (under $10,000) and could streamline recovery via legal claims. Or, sending the debt to collections could be an easy option, too. Finally, consulting with a North Carolina construction attorney could help to recover debts as well - though it might not be a very practical option if the debt isn't very large.

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