In Georgia, liens filed on private property or on funds relating to a public project are known as Mechanic\u2019s Liens. When a Georgia mechanics lien\u00a0is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property.<\/p>\n
Georgia’s construction lien statutes permit contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers to file a Georgia mechanics lien.<\/p>\n
Georgia does have some specific pre-lien filing requirements that should first be satisfied prior to filing a Georgia mechanics lien. \u00a0If the owner files a \u201cNotice of Commencement\u201d and posts it at the project site, then all those who are not performing work directly for the owner or prime contractor should, within 30 days from the initial delivery of labor services or materials to the project by claimant, provide a “Notice to Contractor.” \u00a0Those who fail to provide the “Notice to Contractor” may have their Georgia Mechanics Lien Rights diminished.<\/p>\n
As for the timing of filing the Georgia mechanics lien\u00a0claim itself, the filing of a claim of lien in Georgia must be filed within 90 days after the day on which the lien claimant last performed labor or furnished materials.<\/p>\n
Georgia mechanics liens should be filed because the mechanics\u2019 lien places an encumbrance on the property that makes it difficult to resell or re-finance without first removing the lien. \u00a0This places pressure on the Owner to ensure that everyone that performed work on the project gets paid.<\/p>\n
Another way to ensure payment is to file a stop notice. \u00a0A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic\u2019s lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.<\/p>\n
Finally, if a payment bond has been posted on the project, filing a bond claim can be very effective in obtaining payment. \u00a0Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project. \u00a0The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants\u2019 last date of work. \u00a0Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.<\/p>\n
On Georgia public projects, filing bond claims and stop notices are the most effective way to ensure that you will be paid for the work performed.<\/p>\n