How do mechanic’s liens work in home construction?

| Aug 22, 2020 | Contract Disputes |

As a subcontractor or supplier in Ohio, you may have to forcefully pursue payment. You can come across issues involving breached contracts. The homeowner or general contractor may not fulfill their end of the contract by refusing to pay. 

In these instances, you can place a lien against the home you hold a contract to improve. 

What contract work is applicable for a lien?

LAWriter examines liens for home construction work in Ohio. It breaks down a home construction contract and the potential lien that may follow. For example, the law specifies that “home construction” applies to any single- or double-family dwelling. You may contract to work on part of the home, or the entirety of it. Construction work also covers both indoor and outdoor modifications, such as the installation of a pool or bathtub. 

Who handles a lien?

It also specifies that the original contractor is the one who will end up having to pay the lien. This happens even in the event that a general contractor refuses to pay. Homeowners are responsible for handling a lien. This holds true even if they already paid the general contractor. This is often a financial devastation, leaving home owners with the possibility of paying the same tab twice. 

To get the ball rolling, you must file the lien in the county the property is. You then have around 2 to 6 months to work something out with the property owner. Mechanic’s liens exist under the logic that a supplier’s need to get paid is greater than a homeowner’s. Thus, you can often expect the law to lean toward your side.