When should I begin the process of filing a mechanics lien?

For various reasons, including making sure that no further encumbrances are made to the property that can undercut any equity in the property, I advise my clients to lien as soon as you believe it's clear that no payment is forthcoming (usually when you get the start of a pit in your stomach). That being said, many people try to work things out, or only believe that payment is just slightly delayed, and wait some time. However, in order to preserve your lien rights, you have to file the lien within four months of your last work on the project (in the case of a single family home), or within eight months if it is any other type of property. Failure to file within these windows will result in the forfeiture of your lien rights. 

First, you need to draft your mechanic's lien, it is strongly suggested that you have a professional do this for you as there are strict statutory requirements. This is usually done on a flat fee basis. Then, you need to serve and properly file it with the County Clerk in the location where the Project is. Remember, the general rule is that you have four months to lien a residential project and eight months to lien a commerical project running from the last day you provided labor, materials or equipment. There are some exceptions. Lastly, if you are still not paid, you will need to commence a lawsuit to foreclose on the lien. If you need further assistance, please let me know.  

This depends on the customer. For home owners of single family homes, you have 4 months from the last day worked on the project, excluding punch list or warranty to file. if the home is a conversion from 1 -2 family or 2-1 family there are some nuances, in both cases, use the 4 month rule to save yourself time and trouble. all other private projects, it is 8 months from the last day work, excluding punch list or warranty. I recommend filing once you have 60 days beyond the required payment, which is usually 30 days. that puts you with in 90 days which is a good margin. 

Thank you for your response. Yes I was trying not to file a lien and trying to work things out. I will always attempt to resolve within a reasonable time frame. Here I am 60 Days since I completed the work and I'm trying to explain to the home owner that he needs to speak to his insurance becuase they are just price haggling. I adviced him to speak to an attorney. Sweet older gentleman which is why I waited. This is also an investment property for him, does this change the time line?

No. Your timeline is four months because it is a single family home. The only time that a "single family home" is not considered such under the Lien Law is if you're building a group of them at a time (a tract). Since this is outside of that small exception, it's only four months. 

As a practical matter, you may want to call the homeowner and explain what you have to do, and the timeframe compelling you to do it. That may help things along when you ultimately discuss your final payment. However, you'll have protected your right to that final payment. 

status as an investment propoer does not make a difference. I am not sure why you care about what the carrier is paying to the homeowner. you need to file your lien.