Home>Levelset Community>Legal Help>Hi, I'm a subcontractor who worked for a general contractor that installs for home Depot in Kentucky, Ohio, and Indiana. I've installed in all 3 states. I quit Thursday and the final paycheck they sent me was one penny. You ready that right. For a full week of work over 40 hours. No reasoning, no warning. Nothing. I was wondering if a mechanic lein is the correct route to take? I have the address, phone number, and names of all the people I installed for that week and the amount the general contractor said they would pay me in video evidence. Thanks for any help.

Hi, I'm a subcontractor who worked for a general contractor that installs for home Depot in Kentucky, Ohio, and Indiana. I've installed in all 3 states. I quit Thursday and the final paycheck they sent me was one penny. You ready that right. For a full week of work over 40 hours. No reasoning, no warning. Nothing. I was wondering if a mechanic lein is the correct route to take? I have the address, phone number, and names of all the people I installed for that week and the amount the general contractor said they would pay me in video evidence. Thanks for any help.

1 reply

Aug 26, 2019

When unpaid for construction work, a mechanics lien will often be the most effective tool available for payment recovery. And, because mechanics liens are so effective, themselves - the mere threat of a lien filing, via a Notice of Intent to Lien, might be enough to compel payment all by itself. But, before even approaching the mechanics lien process, it's often a good idea to talk it out before a dispute gets ugly. Anyway - let's first look at the ability to leverage lien rights via a Notice of Intent. Then, we'll take a quick look at the mechanics lien requirements and availability in the states you mentioned above. Notice of Intent to Lien Before filing a mechanics lien, attempting a less-drastic method of recovery might be helpful in preserving relationships while also avoiding a more serious payment dispute. Many construction businesses find that sending a Notice of Intent to Lien goes a long way toward compelling payment without actually having to deal with the cost and headache of a lien filing. A Notice of Intent to Lien acts like a warning shot - it shows recipients that the claimant refuses to go unpaid, and that they aren't afraid to pursue a lien, if that becomes necessary. And, by sending this document to the property owner, the project's general contractor, and anyone else who should be aware of or may be responsible for the debt, it's easier to explain the situation to all relevant parties and put some leverage on whoever has failed to make payment. More on that here: What Is a Notice of Intent to Lien and Should You Send One? Kentucky mechanics liens Mechanics lien rights are available to most project participants in Kentucky - including contractors, subs, sub-subs, and others. So, most people who perform work that permanently improves Kentucky property will be able to utilize the mechanics lien process to obtain payment. Of course, before a lien can be filed, a Notice to Owner (which is essentially a type of Notice of Intent to Lien, discussed above) must be sent. You can learn more about the notice requirement here: About Kentucky Notices. Regarding the Kentucky deadline for filing a mechanics lien - Kentucky mechanics lien claimants generally have 6 months from the last date of furnishing to file their mechanics lien. That means a lien claimant has a lot of opportunity to resolve the dispute before making a lien claim there. More on the Kentucky lien rules, here: (1) Kentucky Mechanics Lien Guide and FAQs; and (2) How to File a Kentucky Mechanics Lien. Ohio mechanics liens Ohio is also pretty broad in who can file a mechanics lien there. GCs, subs, suppliers, laborers, and others are entitled to file an Ohio mechanics lien when unpaid for their work. However, Ohio does have strict preliminary notice rules. And, if a preliminary notice isn't properly and timely sent, a lien claimant will lose their right to lien. More on that here: About Ohio Preliminary Notice. As for the state's lien deadline - the deadline will vary depending on the type of project. non-residential projects will typically have a deadline of 75 days after the lien claimant's last furnishing date. But, for residential condominiums and 1-2 family dwellings, the deadline is shortened to 60 days from the last furnishing date. You can learn more about the rules surrounding Ohio mechanics liens at these resources: (1) Ohio Mechanics Lien Guide and FAQs; and (2) How to File an Ohio Mechanics Lien – A Step by Step Guide. Indiana Much like Ohio and Kentucky, Indiana also broadly allows for mechanics lien protection. In Indiana, contractors, subs, laborers, and other project participants are able to file a mechanics lien. To preserve their lien rights, most Indiana claimants will have to send preliminary notice before they can file a lien - typically within the first 30 days of furnishing labor or materials to the project. More on that here: About Indiana Preliminary Notices. The deadline to file an Indiana mechanics lien will depend on the work being provided. But, generally: residential mechanics lien must be filed within 60 days of last furnishing labor or materials, and the deadline to file a mechanics lien on non-residential projects will be 90 days from last furnishing. More on Indiana liens here: (1) Indiana Mechanics Lien Guide and FAQs; and (2) How to File a Mechanics Lien in Indiana. I hope this information has been helpful!

0 people found this helpful

Helpful