Legal Question in Construction Law in California

Re: Mechanic's Lein

Yep, the subcontractor can do that if not paid.

Look for a preliminary 20-day notice. The mechanic's lien will only cover work done beginning on the 21st day after that notice. The notice must contain a good estimate of the dollar amount of the work the sub would do, or the sub's mechanics lien rights can be extinguished.

The mechanic's lien has to be foreclosed within a short period of time - depending on the facts of your case - or it is lost. That period is 30 to 90 days after it was recorded.

What can you do? Pay the subcontractor directly and sue the contractor for indemnity. Or, you can file a bond with the recorders office in an amount 150% of the mechanics lien and have the lien removed.

Check your contract for a provision that requires releases of all mechanics liens from all subs before the prime is due his next progress payment. If it's there, you can rightfully withhold further payments.

You should definitely contact the prime contractor and ask why the mechanics lien was filed. Did he really not pay? Does his story comport with the story of the sub who filed the lien? If you don't get good answers, you should see an attorney to decide exactly what to do.

Re: Mechanic's Lein

I'm sorry, I just reread my answer and realized I made a small mistake. The 20 day notice covers work done 20 days *BEFORE* the notice is served and going forward.

In my last answer, I mistakenly wrote "after."

If that's confusing, here's an example: Work begins January 1st, 20-Day Notice served on March 1st, Substantial Completion on July 1st, Mechanics Lien Recorded July 15th. What work can the mechanics lien cover? Answer: anything on or after February 9th.

Also note that foreclosure on the lien must occur within 90 days of recordation. In the above example, if a lawsuit to foreclose is not filed by October 13th. However, since that's a Saturday, the time is extended to the following court day (Monday).

Please also note that the 20 day notice is not required of your prime contractor because you have a direct contract with him. The 20 day notice is intended to protect you from lien claimants about which you did not know. It's hard to say you didn't know about the prime contractor, given your direct contractual relationship with him.

Good Luck