Baton Rouge, Louisiana, Construction Liens Attorneys
New Orleans Mechanic's Liens Lawyers
In Louisiana, a construction lien or mechanic's lien is called a privilege. A construction privilege allows a contractor or subcontractor to collect the money owed to them by placing a claim against the home or piece of real estate on which they worked. In order for a home sale or real estate purchase to proceed, the amount owed on the construction/mechanic's lien must be paid first, or it must be paid from the proceeds of the sale of the property (hence its "privileged" status).
Under Louisiana state law, a construction lien must be filed 30 to 60 days after a project's substantial completion (assuming a "Notice of Contract" was filed prior to the start of work).
At the law offices of James S. Holliday, Jr., APLC, we represent homeowners, contractors and subcontractors in cases involving construction/mechanic's liens. Our Baton Rouge lien attorneys understand the issues from both sides of the aisle and can anticipate the concerns of both homeowners and construction contractors.
Whether you need to file lien or dispute one, contact the mechanic's lien lawyers at James S. Holliday, Jr., APLC, or call 225-344-2100 to schedule an appointment.
Perfecting a Construction Lien in Louisiana
When disputes arise about a subcontractor's work, mediation can often be used to avoid the need for a stop-work order, a civil lawsuit, or a mechanic's lien. However, a mechanic's lien may be necessary to protect a contractor's or subcontractor's financial interests on a project.
In general, the following steps are involved in perfecting a mechanic's lien:
- Residential property owners must be furnished with a Notice of Lien Rights by the contractor before work begins on a home improvement project.
- On projects that cost more than $25,000, general contractors must file a Notice of Contract before beginning work.
- Material suppliers are required to furnish a Notice of Non-Payment to a property owner 10 days before filing a lien.
- Contractors or subcontractors who have a contract with the property owner must file a lien within 60 days of substantial completion of a project.
- Subcontractors who do not have a separate contract with the property owner can file a lien within 30 days, once a Notice of Termination is filed by the contractor.
In Louisiana, mechanic's liens are effective for one year, during which time the lien can be enforced against the property owner or other parties involved.
Important Information for Homeowners
A mechanic's lien can be filed for any construction or renovation work done on your property. If you hire a general contractor to perform a home improvement work, he may choose not to file a mechanic's lien. However, a subcontractor can still file a mechanic's lien. The clock starts running on a mechanic's lien when a Notice of Substantial Completion is issued by the contractor. In some cases, a contractor may "reset the clock" on a construction project by temporarily halting work and then performing some small task at a later date.
Contact Baton Rouge, Louisiana, Mechanic's Lien Attorneys
If you are a contractor, subcontractor, or homeowner seeking legal counsel or representation in regard to a mechanic's lien, contact the Law Offices of James S. Holliday, Jr. APLC, today to schedule an appointment and discuss your case.