Home>Levelset Community>Legal Help>Cold you explain amount of lien not due yet??

Cold you explain amount of lien not due yet??

Good morning, Cold you explain amount of lien not due yet?? The project was cancelled for all trades due to owner financial issues. No further information was released and no re-start date has been schedule. Due we still have to leave Any retention money as not due yet? What if this project is never completed? It it resumes in couple more months or years? I greatly appreciate the information of if you can callme Olga Gonzalez A Capital Electric Contractors Inc 703-499-3222

1 reply

Oct 2, 2019

Hey Olga, That section was actually recently added to Virginia's statutory mechanics lien template. We discuss it in detail here: Virginia Mechanics Lien Forms Updated by Legislature. Essentially, that part of the lien template calls for a lien claimant to list any amounts that they're including in a lien claim that isn't due to them yet. So, if there's a situation where the claimant isn't actually owed payment for some portion of their claim - like due to a valid pay if paid clause or under a retainage agreement - then a claimant would list those amounts under that section. But, if everything included in the lien is actually already due and owing (as is usually the case with a lien filing), then a claimant will generally not need to disclose any amounts unde that section. Note, though, that on a canceled construction project, retainage would probably need to be released - withholding retainage makes sense, to some degree, when work is ongoing. But, in a situation where all work is stopped, retainage should likely be released since it represents work that's actually been performed. So, including outstanding retainage in a lien claim may be appropriate, unless it's still specifically allowed to be withheld under the contract for work. For more information on Virginia mechanics liens: Virginia Mechanics Lien Guide and FAQs.

0 people found this helpful

Helpful