Can a subcontractor file a lien against my property for not being paid by the contractor?

Full question:

I live in Georgia and hired a Pool contractor to build an in-ground pool. He, in turn, hired several sub-contractors. I have paid the contractor the full contract price plus cost for some change orders. The work was completed around June 30, 2008. I recently received a notice that the plaster company was filing a lien against my property for failure to be paid by the pool contractor. On 10/25/08 the plaster company came out to take some pictures and I asked them to take a look at a rust spot where the re-bar was rusting through. They repaired the spot and have the project finish date as 10/25/08. What constitutes the 90 day period from completion of the project? My understanding is contractors must submit lien notices within 90 days of project completion. The pool contractor is filing bankruptcy.

  • Category: Contractors
  • Subcategory: Construction Liens
  • Date:
  • State: Georgia

Answer:

In Georgia, the lien must be filed within three (3) months of the last time the person or entity claiming the lien worked on the property or within three (3) months of the last time materials were delivered to or installed upon the property. OCGA Section 44-14-361.1(a)(2).

An automatic stay in bankruptcy proceedings immediately stops any lawsuit filed against the debtor and virtually all actions against their property by a creditor, collection agency or government entity. The bankruptcy code protects a laborer's right under applicable state law to perform post-bankruptcy actions that are necessary to maintain or continue a mechanics’ lien if the generally applicable law provides that the rights of a contractor or supplier “relate back” in time and becomes superior to the rights of intervening lien creditors. A lien may still be enforced if there is a timely filing of a preliminary lien notice under state law in relation to when services or goods are provided to the debtor and relate back to the original date of when the work was begun or the material was delivered.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

A cost plus contract can be favorable when project scope is uncertain or likely to change. It allows contractors to cover their actual costs plus a fee, which can incentivize quality work. For owners, this arrangement can lead to flexibility in project adjustments without the need for constant renegotiation. However, it requires trust and clear communication to manage costs effectively.