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.