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Claim of Lien

Support for the Claim of Lien

Maintain separate accounts for each job or invoices separated for different jobs
Material suppliers have signed delivery tickets

Maintain system of time calculation

Document last day on the job site (job diary, invoice, letter to contractor, photograph)

Do not wait for the contractor or owner to pay you

The lien form must substantially comply with the following per O.C.G.A. 44-14-361.1 (a)(2)

"A.B., a mechanic, contractor, subcontractor, materialman, machinist, manufacturer, registered architect, registered forester, registered land surveyor, registered professional engineer or other person (identify claimant as the case may be) claims a lien in the amount of $(specify the amount) on the house, factory, mill, machinery, or railroad (as the case may be) and the premises or real estate on which it is erected or built, of C.D. (description), for satisfaction of a claim which became due on (specify the date the claim became due) for building, repairing, improving, or furnishing material )or whatever the claim may be)."

It is not recommended that those in the industry file their own claim of lien. A claim of lien must be filed within three months of last supplying labor, material, equipment or services to the project. Lien claimants sometimes confuse ninety days and three months. The statute declares three months as the period of filing which may differ from ninety days depending on the months in question.

The importance of immediate action on lien filings cannot be stressed enough. A general contractor can provide an affidavit compliant with O.C.G.A. 44-14-362.2 (a)(2) and dissolve unfiled liens even if the affidavit is false. The supplying of labor, services or materials gives an inchoate lien right which only comes to fruition upon the filing of the lien (or preliminary notice of right to file a lien). An owner can supply a similar affidavit upon the sale of the property or the securing of a loan in which the property is to secure repayment which will defeat subsequently filed liens.

Notice of Commencement

There are possible additional requirements of second tier subcontractors and second tier materialmen. If a notice of commencement has been filed then additional obligations are placed upon a second tier subcontractor or second tier materialman in order to sustain a claim of lien.

Notice to Contractor and Owner

If a notice of commencement was filed then second tier subcontractors and second tier materialmen must give written notice by certified or registered mail

to the contractor and the property owner within 30 days of the first

delivery or services, materials or provision of labor to the project (See O.C.G.A. 44-14-361.5(1). The notice should include:

The name, address and telephone number of the company, entity or person supplying the labor, materials, services, or equipment

The name and address of the company, entity or person on behalf of whom the labor, materials, services or equipment is provided

The name and location of the project as set forth in the Notice of Commencement

A substantial description of the labor, materials, services or equipment to be provided and the contract price or value of the same.

The failure of a second tier subcontractor or second tier materialman to provide this notice defeats the lien claim of the same.

To protect against the loss of this right, the second tier subcontractor and second tier materialman should request a copy of the Notice of Commencement from the general contractor on every project by certified mail. The contractor is required to provide a copy to the party requesting the same within ten (10) days. Failure of the contractor to do so allows the second tier parties to make their lien claims without providing the Notice to Contractor.

Notice Requirements

A copy of the lien must be sent via certified or registered mail to the contractor or the owner at the same time the lien is filed. The suggestion is that a copy be sent to both.

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