The number one rule in collecting the money you are owed in the construction industry is knowing your lien rights. Having a valid lien means the amount you are owed is secured by an interest in the property you improved. This blog article will go over the steps you need to take to have a valid lien in Louisiana.
Who is Entitled to Lien Rights in Louisiana?
Only contractors and/or material suppliers who have a contract with the owner, general contractor or a subcontractor are entitled to lien rights. That means if you are a fourth tier subcontractor and/or material supplier, or below you do not have lien rights.
What Steps Are Required to File a Valid Lien in Louisiana?
The steps you need to take to file a valid lien in Louisiana depend on the project amount and if a notice of contract was filed.
If the project amount is over $100,000 and a notice of contract was filed, the general contractor has 60 days after the notice of termination is filed to file a statement of claim (lien) all other parties who supplied labor and/or materials that remain unpaid have 30 days after the notice of termination is filed to file their statement of claim (lien).
If a notice of contract has not been filed subcontractors and material suppliers have 60 days from the filing of a notice of termination, substantial completion, or abandonment of the work to file their statement of claim (lien).
If a notice of contract has not been filed, the general contractor will only have lien rights if the project amount is under $100,000 and they have 70 days from substantial completion, abandonment or filing a notice of termination to file their statement of claim (lien).
Once an unpaid contractor and/or material supplier has filed a statement of claim (lien) they must send a copy of what was filed to the owner.
Above I have outlined the deadlines for filing a lien in Louisiana, but there is no law prohibiting filing the lien sooner or sending out and intent to lien letter that states if you are not paid you will file a lien.
As soon as you know or think payment will be an issue take steps to protect yourself and start the lien process.
Need Help Filing a Lien in Louisiana?
If you are owed money for a project in Louisiana give us a call 713-715-7334 and we can talk about steps to take on your particular project. Want to hear more about Louisiana lien rights listen to this podcast episode https://sites.libsyn.com/480441/website/2021/11.
