When a Client Refuses Final Payment: Navigating the Mechanic’s Lien Process
Navigating the Mechanic’s Lien Process When a Client Refuses Final Payment
In the construction industry, receiving prompt and complete payment for services rendered is crucial for maintaining business operations and fulfilling financial obligations to subcontractors and suppliers. Unfortunately, there are instances when a client, despite initially expressing satisfaction with the work, delays or refuses to make the final payment. When this occurs, filing a mechanic’s lien can be an essential step in protecting your right to payment.
The Situation
Imagine you recently completed a significant construction project. Throughout the process, the client seemed pleased with your work. However, upon requesting the final payment, the client began to delay, making various excuses. Over the last two months, you’ve patiently waited, provided documentation, and reassured them about the quality and completeness of the work. Despite these efforts, the client has shifted from promises of payment to fabricating reasons not to pay at all.
Documenting Your Claim
The first step in preparing to file a mechanic’s lien is ensuring you have thorough documentation of your claim. This includes:
- Contracts and Agreements: All signed contracts and any amendments.
- Invoices and Payment Records: Detailed records of all invoices sent and payments received.
- Communication Records: Emails, texts, and letters between you and the client discussing the work and payment.
- Proof of Work Completion: Photographs, completion certificates, and client acknowledgments.
- Subcontractor Agreements: Contracts and communications with your subcontractors, proving their involvement and the amounts owed to them.
Filing the Mechanic’s Lien
A mechanic’s lien is a legal tool that secures your right to payment by placing a hold on the property where the work was performed. Here’s how to proceed:
- Understand the Deadlines: New York state has specific deadlines for filing a mechanic’s lien, ranging from 4 months to 8 months depending on the type of project. Since your work was completed about two months ago, it’s crucial to act swiftly to meet these deadlines.
- Prepare the Lien Form: Complete Speedy Lien‘s Intake Questionnaire, which asks general information about the property, the amount owed, and a description of the work performed.
- File the Lien with the County Clerk: Once the form is submitted, Speedy Lien files and perfects your mechanic’s lien. Serving the parties involved is a critical aspect of filing a lien.
Hiring Speedy Lien, Inc.
Navigating the mechanic’s lien process can be complex and time-consuming, especially when you’re dealing with the frustration of non-payment. This is where Speedy Lien, Inc. can be invaluable. Speedy Lien specializes in filing mechanic’s liens, offering expertise and efficiency to ensure the process is handled correctly and swiftly. By hiring Speedy Lien, you can focus on your business while knowing that your lien claim is in capable hands. Their team will ensure all documentation is properly prepared and submitted, meeting all legal requirements and deadlines.
Addressing Subcontractor Claims
Your subcontractors also have the right to file a mechanic’s lien if they are unpaid due to your client’s non-payment. Encourage them to follow a similar process, ensuring they also meet the state’s deadlines and filing requirements. Speedy Lien can assist your subcontractors as well, streamlining the process for everyone involved.
Legal Considerations
Filing a mechanic’s lien can escalate tensions with the client, potentially leading to legal proceedings. It’s wise to consult with an attorney specializing in construction law to guide you through the process, ensuring all legal protocols are followed and your lien is enforceable.
Final Thoughts
While filing a mechanic’s lien may feel like a drastic measure, it is often a necessary step to secure payment for work you’ve completed. By meticulously documenting your claim and adhering to legal requirements, you can protect your business and ensure that you and your subcontractors receive the compensation you are owed. Speedy Lien, Inc. is here to support you through this process, providing expert assistance to ensure your lien is filed accurately and promptly. This legal tool is designed to support professionals like you, ensuring fairness and accountability in the construction industry.
Call Speedy Lien, the mechanic’s lien experts. We are the Speedy Lien Team; we have your back. Free consultation of your lien rights.
Dillon Nash, Executive Vice President
Speedy Lien, Inc.
212-203-7420 or 516-679-6702 EXT. 104
