For a sub-contractor, sub-sub-contractor, or material provider (jointly referred to as "sub-contractor") to ensure payment in a construction project, he must strictly follow the procedure set forth in the Construction Lien Statutes. If these procedures are not followed, the sub-contractor can get caught in any disagreement between the contractor and property owner. Also, if the owner is unable to pay for the improvements, the sub-contractor who does not follow these procedures would be unable to make a claim against the property.

First, anyone with lien rights who has not directly contracted with the owner (or who is not in privity), must provide a Notice to Owner. This notice must go to the owner, and if the sub-contractor has not contracted directly with the contractor, a copy must be served on him as well. This notice must be served within 45 days of commencing to furnish services or materials and prior to final payment to the contractor, and must contain the language and be in the form required by statute. The notice must be actually delivered to the owner or sent by certified or registered mail. The notice to owner does not create a lien, but is an essential requirement to filing a lien.

Provided the notice to owner was sent timely and in the correct form, a sub-contractor is entitled to a claim of lien on the property. A claim of lien must be recorded within 90 days from the date the sub-contractor last furnished labor, services or materials. This does not include repairs or punch list work. The claim of lien must also be served on the owner within 15 days of its recording.

So long as there is sufficient equity in the property, correctly following these procedures should assure the sub-contractor is paid.

If you are interested in obtaining additional information regarding this article or any other article on this site, please contact Bart Scovill at Firm@Scovills.com or through our firm.