Post a question in our community to get free advice from Construction Attorneys in your state, typically within a week. Questions are public, so do not share personal information. For extra privacy, select the anonymous option.
While Louisiana requires a Notice of Contract to be filed on any project in excess of $100,000, is the filing with the recorder of mortgages or is this done at the time I file for my building permit? When I filed for my permit to build, I had to submit a copy of my contract to the city permit department. Am I within my rights to file lien?...Read More
What if I started a small business doing work "on the side" that became a larger undertaking. I created an LLC but had no idea about licensing requirements but am now ready to expand to full time. Will the board find me liable for fines after the fact? I've had no claims against me.
Shreveport, LA 71115...Read More
I submitted a question on 7/2/18, and received a response from Matt Viator on 7/3/18 (both of which are copied below). My question has to do with the Notice of Termination. Our company never filed a Notice of Contract with the county recorder's office, so I understand that the subcontractor must file their lien within 60 days from the date our company filed a Notice of Termination. Our company issued a written Notice of Termination to the subcontractor on 5/17/18 but did not file a Notice of Termination with the county recorder's office until 7/2/18 (primarily because we did not know about the need to record such notices). I just want to make sure that the critical date for starting the 60-day lien filing period (for the subcontractor) is still 5/17/18. Please confirm, thank you.
Subcontractor lien rights in Louisiana - submitted 7/2/18
Right to Lien
Our company completed a private project in Louisiana as a general contractor on 6/26/18 (substantial completion). Our company hired a subcontractor to perform a specific scope of work as part of this project. We later had to terminate the services of the subcontractor due to multiple performance and schedule issues. The subcontractor abandoned the jobsite on 5/11/18, then we filed a Notice of Default with the subcontractor on 5/15/18, and finally filed a Notice of Termination with the subcontractor on 5/17/18. Our company then had to complete the specific scope of work of this subcontractor, and complete the overall project.
My questions: 1. What lien rights does this subcontractor have against the owner property, and 2. What are the deadlines for the subcontractor to file a lien?
Our company has filed a Notice of Completion with the local parish clerks office for the overall project based on completion date of 6/26/18 and a Notice of Termination with the local parish clerks office against the subcontractor in question for their specific scope of work based on termination date of 5/17/18.
Legal Associate zlien
Under § 4802 of the Louisiana Revised Statutes, subcontractors are entitled to a mechanics lien "for the price of their work." Of course, when that workmanship is in dispute, there may be question as to whether they're still entitled to file a lien for their work performed. A subcontractor might be able to actually file a lien based on the price of their work. However, if that lien were challenged or if it came down to a lien enforcement action, a party who had to perform remedial work to cure issues caused by their sub might be able to argue that nothing is owed. If the subcontractor did not, in fact, add value to the work of improvement, it might be a valid basis for challenging the filed lien. Regarding deadlines - Louisiana's lien filing deadline can be tricky. If a Notice of Contract was filed, subcontractors must file their lien within 30 days of the filing of a Notice of Termination. If a Notice of Contract was not filed, a subcontractor must file their lien within 60 days of the filing of a Notice of Termination. In the instance where a Notice of Termination was not filed, that timeframe will instead run from the substantial completion of the work....Read More
We have a bunch of customers who owe us money. We are in the process of collecting money through the LA lien process. Please let me know if we file a notice of contract today for example on a customer who we had a contract signed in 1/1/21 but we never completed the contracted amount. We still have rights to lien correct? please call me asap 504.402.8379 text me if I don't answer please asap!
A contractor called dry out restoration sent a demo company to demo my home and they split boards throughout my home in the structure and is still requesting payment I have pictures of the damage which they said they would pay then the owner said no...Read More
We have not worked for a particular contractor for 2 years, the contracted time to have retainage released (their contract that we signed), so we routinely sent a letter asking for the return of our retainage. The contractor now denies he withheld any retainage from us and has conveniently manufactured a $5,500 "advance" payment for a job that he says we owe him. We never invoice for any work that is not completed. And I find it highly interesting that this "advance payment" record has no check number on it like all his other payments to us. He is now demanding $5,500 from us after zero contact for two years. I would have noticed if we were paid an extra $5,500 unattached to an invoice. It always took an act of God just to get a check from him for jobs we HAD completed....Read More
Hello, My name is Jamal. I recently started a project at a customer home and didn't get paid. I had a contract with the customer but didn't have a notice of lien. Is there anything you all can help me with?...Read More
I as being asked to be the qualifying party for a company so they can be a Licensed Contractor and open the opportunity for bigger jobs. They have offered me 5% ownership of the company and 5% of the profit split. I would like to know if 5% ownership and 5% profit split is reasonable for the risk of me becoming the qualifying party for the License....Read More