***This post’s original content has been edited to reflect the legislative changes enacted pursuant to the passing of LA HB 203
You are a subcontractor on a big job, and your demands for payment are going nowhere. Naturally, you are going to file a lien on the project. But what if the general contractor fails to file a notice of contract?
Louisiana Revised Statute 9:4822 provides that if no Notice of Contract has been filed, a contractor has 60 days from completion on the project to file a Louisiana mechanics lien if the contract amount is less than $100,000. The statute further provides that if the contract amount is greater than $100,000, and the Notice of Contract is not filed, the prime contractor has no lien rights.
For a subcontractor, if a Notice of Contract has been filed, he/she has 6 months from substantial completion or abandonment. However, if a Notice of Termination is filed, the subcontractor will have 30 days from that filing date.
If no Notice of Contract has been filed, a subcontractor has 60 days from either the filing of a notice of termination, the substantial completion, or abandonment of the work to file the Louisiana mechanics lien claim.
Mechanic’s liens are a great tool for subcontractors to protect their business. Should you have any questions or you would like to discuss this issue in further detail, please do not hesitate to contact us to schedule a free consultation.