i filed a lein warning today. When and how long should i wait to file the actual lein?
1 reply
Apr 7, 2020
Knowing when to proceed with a mechanics lien filing can be a tough call, but it's different for every business. Let's look at some factors to consider, which should help you decide when to initiate the lien process, if necessary.
For one, the most important factor should be the mechanics lien deadline. If there's little time to file a lien before the deadline, then waiting might not be an option. In Michigan, that deadline is 90 days after last furnishing labor or materials to the project. So, as that deadline grows closer, a business should more seriously consider filing their lien if they haven't gotten paid.
If the lien deadline isn't an immediate issue, then it might be worthwhile to try and negotiate the dispute before jumping to a lien filing. A Notice of Intent to Lien can be a powerful recovery tool, and it's usually useful for bringing the other parties to the negotiating table. And truly - that's the point of the Notice of Intent. It serves to show recipients you're serious about getting paid and should convince them to pay you what you're owed before an ugly dispute erupts. So, if there's time, discussing the debt with your customer or others on the project may be worthwhile.
Obviously, liens aren't always avoidable - and you can learn more about Michigan mechanics liens at these resources: (1) Michigan Mechanics Lien Guide and FAQs; and (2) How to File A Michigan Mechanics Lien – Step By Step Guide To Get You Paid.