What is the next step to recover my money? Can I sue in small claims court?
You need to file a lawsuit to foreclose on the lien. Often the suit includes a claim for breach of contract. The time to sue to foreclose on the lien is 90 days from recording. The time to sue for breach of contract is longer. Small claims is not the place to try to foreclose on the lien. Depending on the amount in question, small claims might be the better place to pursue the breach of contract claim. It really depends on the specifics of your situation.