There are many types of construction disputes that arise during a building project, and one of these involves a property owner’s dissatisfaction with the work done.
When this happens, the property owner may decide to deal with the problem by simply not paying you. This can cause you major problems, not only because you are not getting paid but also because you are likely going to be unable to pay third parties, such as contractors or subcontractors.
Addressing the problem without the need for a lien
Everyone who works on a building project deserves to be paid for their work. The best way to resolve a construction dispute like this is to have a conversation with the property owner about why they are unhappy with the work and seek to find a resolution.
This may not always work. The property owner may be unwilling to discuss anything or negotiate possible solutions to the problem.
Filing a mechanics lien
You then have the option of putting a construction lien on the property. A construction lien is sometimes called a mechanics lien in Maryland and must be filed within 180 days after you last provided materials or labor to the property owner.
A mechanics lien gives you a security interest in the property. Any party who performed work on the property can file a mechanics lien.
Once a mechanics lien is placed on a property, it can become difficult or impossible to sell the property because of the lien. If you negotiate a resolution to the dispute, you must give the property owner a signed release of lien.
Your mechanics lien petition
The petition for your mechanics lien must contain specific information and you must serve it on the property owner within a certain deadline. Attorneys experienced with construction law can help you with filing your mechanics lien petition and negotiating a resolution to the situation.