Full question:
The lenders on this job are distributing progressive payments directly to the owner. The owner is holding moneys from the general contractor, this has been going on practically from the beginnig of the job. I have completed my work. It has been over sixty days now and the owner is holding final pay from the general contractor. The general contractor says they are trying their best to finish owners punch list and owner will not release any funds. We are the painting contractors on this job. A preliminary lein has been filed. At this point shall we follow with a mechanics lein for the remainder, throughout the job we have had to wait 60 to 90 days to receive progressive payments and they have never dispursed the amount we asked for.
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: California
Answer:
A mechanic's lien can only be recorded after you have completed all work under your contract. This means you either need to finish the entire scope of work or be excused from the remaining work due to a breach of contract. You must record the mechanic's lien within ninety days of completing the work if no notice of completion or cessation has been filed, or within thirty days if such a notice has been recorded.
In California, a 20-Day Preliminary Notice is important as it preserves your lien rights if served timely. This notice must be served no later than twenty days after you first provide any benefit to the property. If you don't serve this notice, you may lose your lien rights.
According to California law (Cal. Civ. Code § 3116), you must record your claim of lien after you stop providing labor or materials, and before the deadlines mentioned above. If the work was done under multiple contracts, the owner can record a notice of completion, which changes the recording deadlines for claims of lien.
Given that you have already filed a preliminary lien, it may be prudent to proceed with a mechanics lien for the remaining amounts owed, especially since you have faced delays in payment.
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.