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Regarding Supplying Materials to Prefab Company

California

We are a custom vinyl window manufacturer. We have been approached by a company that builds Prefab Modular buildings at their warehouse. We are unsure whether said company then ships and installs the Modular building at the building site (possibly in a different state then we are located and the Prefab building company is located). Is there any concern in regards to our company having lien rights?

4 replies

Aug 10, 2021
Your lien claim would be against the landowner; therefore, it would depend upon where the windows were eventually installed. The laws are not identical across the states. You won't know about your rights to a lien until your product is installed on a job site. You should not count on that as your means of payment.
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Aug 10, 2021
A couple of initial potential concerns: 1. If you don't konw where your material ultimately ends up, how do you konw what property to record your lien against? 2. Each state has thier own requirements wiht respect to mechanics lien prerequisites and not knowing where your product will end up means you don't know what states rules and prerequisites you must comply with. My general experience with similar situations is these are almost impossible to enforceably lien because you have no way to track where you product goes, what prefab building it is in and where that is going.
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Aug 11, 2021

Our product will be shipped to Idaho, where it will be installed by our customer into modular units. Then our customer will ship the modular units to California for installation at the jobsite. Does this information help in terms of answering our question of whether we will have lien rights? Additionally, does the type of project (public or private) affect lien rights and deadlines?

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Aug 11, 2021
Yes and no. If you know what material is going into what modular unit and then which location in California that unit would be installed you could likely have enforceable lien rights on the property location where the modular unit is installed becuase you can trace your material. If it was public that would make a difference becuase you cannot lien public land. At this point I would suggest you have your lawyer look at it with you because you are getting pretty deep into lien rights and laws.
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