It’s not always easy to receive the gold you’ve earned in the Golden State. California, like all other states, has mechanics lien laws to help construction workers and suppliers like you get paid. Like all other states, California mechanics lien and California construction lien laws are also confusing and complicated. So you need to know how the law works to be able to properly file a California lien and protect your right to be paid. Here are 5 things you need to know about the California mechanic lien laws as reported to NLB busy our network of construction attorneys and construction lawyers to successfully file your next lien.
WHO CAN FILE
Generally, every state has laws that limit who can file a mechanics lien and a payment bond claim, and California liens are not the same to perfect. You need to know how and when to take the required steps. The pre-lien or preliminary notice requirements are different for each state on Private, Public, and Federal Projects. When you send the notice to the owner, preliminary notice, or pre-lien notices are also different for a supplier, sub, GC, or design professional.
National Lien & Bond professional lien providers and construction lawyers have helped subs and suppliers get paid on over 26,000 projects since 1986. NLB is here to help you learn what steps you need to take and when to send a notice or lien to secure your job funds on every project.
When you download a summary that may not be current or the deadlines and steps are confusing to follow. NLB offers every sub and supplier the ability to get answers you need to get paid!
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NOTICE OF RIGHT TO LIEN
Your first step in protecting your lien rights is typically to serve notice of your right to file a mechanic’s lien, often referred to as the “Preliminary Notice”. It must be served on the owner and the general contractor. Unless you are working directly for the general contractor. If the owner obtained a loan to fund the project, you must also serve the notice to the construction lender. The Preliminary Notice timing shown is not always mandatory but will afford maximum protection for liens.
This notice may be served when you begin supplying materials to the project. If you miss the statutory date, you may in some states still serve the notice to capture remaining funds as state law typically bit not always provides. Notice (Statutory Form) to owner, contractor, construction lender & person with whom the claimant has contracted within a date certain from the time you began work, or in some times before you start and in others when you completed work.
The notice may either be served by certified mail, return receipt requested, or personally served on each of the parties. If you file a lien, you need to provide proof of this service by affidavit and proof of mail delivery. The notice typically includes a description of the work or goods you will provide, the estimated total price of the work or goods you will provide, and the statutorily required statement.
PREPARING THE LIEN
Every mechanics lien typically must contain the owner’s name, a general description of the property and location, the name of the hiring party, the first and last date of work a description of the work performed, and the amount of money owed. The lien may also include other statutorily required statements and best practices require a lien to be prepared by a lawyer in the project state.
FILING AND SERVING THE MECHANICS LIEN
According to the mechanics lien law, after your notices are served timely the lien must be filed in the county recorder’s office in the county where the property is located. The lien may either be served by certified mail, return receipt requested, or personally served on each of the parties. If you file a lien, you may in several states need to provide proof of this service by affidavit and proof of mail delivery.
Even if circumstances change, it is never too late to start a dialogue with the owner and GC Click Here to set up an appointment with general counsel to discuss the details of your initial consultation. If you properly perfected all the required steps you can likely start a foreclose action on the lien, sue the surety on a bond or sue for collection and other remedies. Property owners and competing creditors may try to block your path, but if you followed the law, you will have placed yourself in a strong secured position against your adversaries. To learn how to secure all your receivables Click Here to set up an appointment with general counsel to discuss the details of securing your company’s entire receivables on private public and federal construction projects both in the USA or around the world.