We are a subcontractor company, we entered into a contract with another Sub to provide Material only. We have invoiced for all of product, though we still have some on site that has not been delivered. We have invoices going back to August 2022 through January 2023 that are unpaid. The one time I was able to get them on the phone, he informed that he did get paid by the owner and payment would be sent. He has since stopped responding. Because this is a product only contract, do we still have lien rights? If we do, do we send the intent to lien to our customer as well as the owner?
Material suppliers can have lien rights provided the materials were supplied to the owner or the owner's agent. This is not what we term as privity, but the materials must be supplied at the instance of the owner. You need to hire an attorney to be sure here as that takes a review of the contracts and the facts.
The next issue relates to timing. A lien must be filed (and the notice of intent to lien) must all be done no later than four months from the last material furnished by the lien claimant. You said some of this relates to material from before August 2022. It sounds like many of your claims are past the time required to timely file a lien.
In short, hire a construction attorney for an hour or two for advice on this and to complete the forms. This is really not a DIY project given these facts and if you file a lien that is incorrect on amount and other factors, you may relinquish your lien rights.
For clarity, lien timing starts when the material or labor was provided not when the job was completed?
For filing the lien, it is from the last day of the last material or labor (for people who are providing labor, of which you are not) is furnished by the claimant.
Has the clock started since we have yet to deliver the rest of the material? Or is based on the individual invoice if progress billing?
As I noted in my first post, I cannot provide legal advice without being hired and reviewing the contract and getting more facts. It really depends and this is an incredibly important determination and requires legal advice.
This place (and any online forum where people ask general legal questions) is great to provide what is termed as legal information. I provided legal information when I answered your question on lien filing timing being from last labor or material not based on the project completion. That is simple and does not require particular facts. Your matter is not simple and requires review of the contract and more particular facts and requires providing legal advice not legal information.
Lien rights refer to the legal claim a person or entity has over someone else's property to secure payment for a debt or obligation. Understanding lien rights is crucial for contractors, suppliers, and anyone involved in construction projects. Whether you have lien rights or not depends on various factors, including your role, jurisdiction, and contract terms. To explore this topic further, you can visit https://writinguniverse.com/proposal-essay-topics/ for a comprehensive guide on lien rights and other intriguing proposal essay topics. Expand your knowledge and stay informed in this complex legal domain.