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Can I file a mechanics lien?

I am a General Contractor on a privet job over 100k in the state of LA- I filed a notice of contract to the property owner as required and he refused to sign the notice; Therefore, we can not submit a mechanics lien. I have two subcontractors who have not received payment because we (the GC) have not received payment. If these subcontractors submit a mechanics lien on the property and obtain payment- that would drop the cost of our project under 100k. Could we submit a mechanics lien then?

1 reply

Oct 2, 2020

Louisiana GC's must file a Notice of Contract for projects that will exceed $100,000. This notice should be filed prior to when the work begins, as laid out by § 4811. Further, § 4811(D) states that "A general contractor shall not enjoy any privilige arising under this Part if the price of the work stipulated or reasonably estimated in his contract exceeds one hundred thousand dollars unless notice of the contract is timely filed." So, if the price of the contract or a reasonable estimate for the work exceeds $100,000, then failing to timely file a Notice of Contract would result in the loss of lien rights. And, a subcontractor filing a mechanics lien sometime thereafter wouldn't retroactively affect the Notice of Contract requirement. With that being said, it's worth noting that other recovery options could still be on the table even where mechanics lien rights might not be the best option. Tools like demand letters, legal claims, and collections could all be used to ensure that payment is made, as required.

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