Working construction can be a tough job, but what’s even tougher sometimes is the act of getting paid. If you’re in Louisiana, then you may find yourself in a bit of a pickle when it comes to getting your money, but with the right things in place, you can always ensure payment by filing what’s called a mechanic’s lien. Many states have different laws in place, and even some counties may have them as well. We’re going to explain the process of filing a Louisiana mechanic's lien a bit so you know what you need.
If you’re doing a commercial lien in Louisiana, there are Upfront notices that have to possibly be filed. This notice of Obligation is an optional notice, but it helps you to require the property owner to let you know if they’re going to file a notice of termination, and they will be liable for all legal fees for enforcing your lien claim. If you hire a good mechanic’s lien company, you can have this filed after your courtesy notice, which has to be filed in the state of Louisiana.
Don’t Forget the Equipment
Another thing that needs to be given to both the contractor and the owner, is what’s called a Lessor of Equipment. This needs to be done within 30 days of any equipment being put on the job site, and if you don’t do it within 30 days (primarily for equipment renters and suppliers), then it only applies for rents after the notice is provided to the parties. You have to reply in a 15-day period with detailed lists of all equipment placed at the job or construction site.
How to Ensure Payment
When it comes time to non-payment from the client, the subcontractor that’s being supplied has to be delivered within 75 days BEFORE the last day (of that particular month) that the material was delivered, but it has to be no later than the normal lien deadline, which is 30 days after the notice of termination has been filed. You may end up having to file multiple liens, and if you’re doing a public work’s project, things are also a bit different. You have to do all of this within 10 days, and the same rules apply as they would with the standard commercial jobs. So, in a nutshell, you get a bit more leeway with timing in terms of a commercial job, but a follow-up notice has the same time limit.
Why Struggle with the Paperwork?
A lot of people who aren’t contractors don’t realize just how much paperwork (and neither do newer contractors) is needed when it comes to finishing a job and ensuring payment, or even with making sure they get their hard earned money for a job that they did (which the client doesn’t want to pay for). If you hire a high-quality mechanic’s lien service such as BICA Net, you can get the best service and have a dedicated team of professionals handle all the paperwork for you, so you can worry about your work!