A couple of times a year I provide an update to the construction community on the time frames associated with filing a mechanic’s lien and pursuing various claims. There are serious misunderstandings when it comes to the correct time frames. Shockingly, most contractors and subcontractors do not know the correct time frames associated with filing a mechanic’s lien.
Every contractor, subcontractor and supplier should know the correct time frames to properly protect their receivables. You would expect your doctor to know the fundamentals of medicine when administering any form of treatment. Similarly, it is expected that someone in the construction business should know the important criteria needed to protect their receivables.
I cannot emphasize enough the importance of filing a mechanic’s lien. Many times it is the difference between getting paid and not getting paid. By filing your lien you are protecting your interests. By not filing your lien, you may be jeopardizing your right to collect anything. Do not, however, wait for the last day to file your lien. Once the general contractor has been paid by the owner, your lien is essentially worthless.
Furthermore, many payment bonds contain strict requirements that notices be served on various parties within a specific time frame. Once that time frame expires, your right to recover may be jeopardized.
Be aware of the various pitfalls that exist. The general contractor, owner or surety may drag you along until your time to file a lien or pursue the payment bond expired. I have, therefore, listed the various time frames associated with filing a mechanic’s lien or making a payment bond claim.
Private Improvement:
One family (also 4 months from date of last two family suggested) item of labor or material
Commercial and more than one family – 8 months from last item family of labor and materials
Duration of Lien – 1 year
Renewal:
One family dwelling – Court Order
More than one family and first-year renewal – Notice of Renewal commercial
After one year of more than one dwelling and commercial – Court Order
Public Improvements:
Lien – 30 days after completion and acceptance of a job
Duration – 1 year
Renewal – Court Order
Payment Bond Notice:
Notice Directed to any two of Owner, Bonding Company or Contractor – Usually 90 Days
Time for Commencement of Action – Usually 1 year
Direct Contract with Principal – Usually no notice required
Time for Commencement of Action – Usually 1 sometimes 2 years
Never let your lien time run out!
For a free copy of a pamphlet pertaining to mechanic’s liens and payment bond claims, please contact me.
