In Louisiana, if contractors or suppliers are not compensated for their work on a construction project, they have the option to file a mechanics lien to protect their payment rights. A mechanics lien is a legal tool that grants the unpaid party a claim on the property itself, serving as a powerful way to secure payment.

Consulting Louisiana construction attorneys is crucial for navigating the complexities of mechanics lien laws and ensuring successful legal processes in the construction industry.

To file a valid mechanics lien, you must complete the mechanics lien Louisiana form, which includes essential information such as the legal property description, names of the owner and claimant, and a summary of services provided.

At CRM Lien Services, we specialize in ensuring that you get paid quickly and reliably. We can prepare and file mechanics liens for you in accordance with Louisiana law, taking into account Louisiana construction lien law and state-specific rules and regulations, including the need for an adequate and ascertainable description of the real estate.

This guide outlines the essential rules, obligations, and deadlines you must adhere to when filing a mechanics lien in Louisiana.

Key Takeaways

• Eligibility for Filing a Louisiana Mechanics Lien: Contractors, subcontractors, material suppliers, equipment lessors, and design professionals have lien rights, but suppliers to other suppliers do not.
• Strict Filing Deadlines: The deadline to file a mechanics lien in Louisiana depends on whether a Notice of Contract or Termination is filed, with specific timeframes for different project roles.
• Lien Form Requirements: A valid mechanics lien in Louisiana must include detailed property descriptions and essential claimant and service information, but notarization is not required.

Understanding Louisiana Mechanics Lien Law

Navigating the intricacies of Louisiana mechanics lien law is crucial for anyone involved in construction projects within the state. This body of law is designed to ensure that construction workers, contractors, and suppliers are compensated for their contributions to a project. However, the process of filing a mechanics lien can be complex, requiring a thorough understanding of the legal requirements and steps involved.

Louisiana mechanics lien law provides a structured framework that outlines who is eligible to file a lien, the necessary documentation, and the specific deadlines that must be met. For instance, the law mandates that a valid mechanics lien must include a complete property description, the names of the owner and claimant, and a detailed summary of the services provided.

Additionally, understanding the nuances of substantial completion and the impact of notices like the Notice of Contract and Notice of Termination is essential for ensuring compliance and protecting lien rights.

By familiarizing yourself with Louisiana mechanics lien law, you can take the necessary steps to secure your payment and enforce claims effectively. Whether you are a general contractor, subcontractor, or supplier, having a solid grasp of the legal landscape will help you navigate the process with confidence and avoid potential pitfalls.

Who Is Eligible to File a Mechanics Lien in Louisiana?

Louisiana’s mechanic’s lien laws provide coverage for a wide range of project participants. These include general contractors (GCs), subcontractors, workers/employees, material suppliers, equipment lessors, licensed surveyors, engineers, architects, and professional sub-consultants.

Registered or certified surveyors are also eligible to file liens for their work.

Additionally, under Louisiana law, material suppliers (also referred to as sellers of movables) who supply fuel for equipment or machinery used on the project are granted lien rights.

However, suppliers to other suppliers are not eligible for mechanics lien rights in Louisiana.

Can I File a Mechanics Lien Louisiana If I’m Unlicensed?

No, if the work performed requires a license and the contractor does not possess the necessary licensing, a valid mechanics lien cannot be claimed in Louisiana.

While Louisiana’s lien laws do not explicitly mandate licensing for filing a lien, a valid contract is essential to secure lien rights. A recent Louisiana Court of Appeals case clarified this, ruling that contracts with unlicensed contractors are considered an “absolute nullity.” Since a valid contract is needed to claim lien rights, it follows that proper licensing (if required) is necessary as well.

Providing written notice is also crucial to secure lien rights, as it ensures all involved parties are properly informed about the amounts claimed and contract specifics.

Additionally, unlicensed contractors may face penalties from the Louisiana State Licensing Board for Contractors, including fines. In such cases, recovery for non-payment may be limited to the “minimum value” of the work performed.

What Is the Deadline to File a Mechanics Lien Louisiana?

The deadline for filing a mechanics lien in Louisiana can be somewhat complex and varies based on factors like whether a Notice of Contract or a Notice of Termination was filed and the claimant’s role in the project.

A Louisiana mechanics lien claim involves a specific filing process and has significant implications for contractors, subcontractors, and suppliers. Filing a Notice of Contract is crucial to secure lien rights, and a mechanics lien can encumber a property, affecting its resale or refinancing opportunities.

If no Notice of Contract was filed: All claimants must file their lien within 60 days of substantial completion, project abandonment, or the filing of a Notice of Termination.

If a Notice of Contract was filed: The deadline differs depending on the type of claimant:

• Direct contractors: They have 7 months from substantial completion or abandonment to file a lien. If a Notice of Termination is filed, the deadline is shortened to 60 days from that filing.
• Other claimants: They must file their lien within 6 months of substantial completion or abandonment. However, if a Notice of Termination is filed, they have only 30 days from that date to file.

A recent legislative update, effective January 1, 2020, altered some deadlines for project participants. It’s essential to stay informed about these changes to avoid missing critical filing deadlines.

You might wonder how to know if a Notice of Contract or Termination has been filed. Louisiana law allows claimants to send a Notice to the Owner of Obligation, which requires the owner to inform the claimant within 10 days of substantial completion, abandonment, or the filing of a Notice of Termination.

Can the Deadline for Filing a Louisiana Mechanics Lien Be Extended?

The deadline to file a mechanics lien in Louisiana can be extended, but only in very specific situations. In certain circumstances, attorney’s fees can also be recovered, particularly when proper notifications and actions are taken to preserve the right to these fees.

For residential projects where no Notice of Contract was filed, a party that did not directly contract with the property owner may send a Final Notice of Nonpayment. If this notice is delivered at least 10 days before the lien filing deadline, the claimant’s deadline is extended by an additional 10 days. However, this extension is only applicable under these limited conditions.

Is a Legal Property Description Required on a Louisiana Statement of Claim & Privilege?

Not exactly. Louisiana law requires that a Statement of Claim and Privilege must “reasonably identify the immovable property where the work was performed” and be “sufficient to clearly and permanently identify the property.”

Trustees and trust funds play a crucial role in enforcing claims related to wages and benefits under collective bargaining agreements, particularly in relation to payments owed to employees or laborers.

Including the lot, square, subdivision, or township and range is typically sufficient, whereas just listing the street and mailing address alone is inadequate.

While a street address and some additional details might sometimes suffice, case law indicates that the safest approach is to include a legal property description to ensure the lien is valid.

Can Attorney’s Fees, Collection Costs, or Other Amounts Be Included in the Lien Total?

Yes, generally. Under Section 4803 of Louisiana’s Private Works Act, a mechanics lien in Louisiana can include the principal amount owed for the work, any accrued interest, and the fees paid to file the lien statement.

Those renting or leasing equipment are also eligible to file lien claims, ensuring that equipment lessors are protected under the legal framework surrounding construction contracts.

Attorney’s fees may be recoverable if the lien claimant wins a foreclosure action and if the contract includes such a provision. However, punitive or consequential damages and the cost of unused or unincorporated materials cannot be included in the lien claim.

Does a Louisiana Mechanics Lien Form Need to Be Notarized?

No, notarization is not required for a Louisiana mechanics lien form to be valid.

What Are the Lien Waiver Rules in Louisiana?

Louisiana doesn’t provide statutory lien waiver forms, meaning you can use any form for a lien waiver. However, since lien waivers are not regulated in the state, it’s essential to carefully review and understand them before signing.

The state’s laws do not clearly address whether contractors and suppliers can waive their mechanics lien rights before starting work on a project. As a result, it’s advisable to approach this matter with caution.

Who Is Required to Send a Louisiana Preliminary Notice?

Louisiana’s preliminary notice requirements vary depending on your role in the project and the type of project.

Here are the key notices based on the different parties involved:

General Contractors:

• Notice of Contract: Required for private projects valued at $100K or more. This serves as Louisiana’s version of a Notice of Commencement.
• Notice of Lien Rights: Mandatory for owner-occupied residential projects.

Material Suppliers:

• Monthly Notice of Nonpayment: If hired by a subcontractor, suppliers must send this notice monthly when a Notice of Contract has been filed.

Equipment Lessors:

• Notice of Lease: If an equipment lessor didn’t contract directly with the property owner, they must send this notice to secure their lien rights.

Design Professionals:

• Design Professional Notice: Required for consultants and sub-consultants, such as surveyors, engineers, and licensed architects, who didn’t contract directly with the owner.

Bond Requirements

In Louisiana, bond requirements play a significant role in protecting the interests of contractors and suppliers on large construction projects. For any project exceeding $100,000, a bond must be secured to guarantee payment for the work performed. This bond, issued by a surety company licensed to operate in Louisiana, must be equal to the total price of the work.

The purpose of the bond is to provide a financial safety net, ensuring that contractors and suppliers receive payment even if the property owner defaults. This requirement is particularly important for large-scale projects where the financial stakes are high. By securing a bond, project participants can have greater peace of mind, knowing that their payment is backed by a reliable surety company.

Understanding the bond requirements and ensuring compliance is essential for anyone involved in substantial construction projects in Louisiana. By doing so, you can protect your financial interests and ensure that your hard work is duly compensated.

How to File a Louisiana Mechanics Lien?

If you haven’t been paid for work on a Louisiana construction project and want to file a mechanics lien (referred to as a “Statement of Claim & Privilege” in Louisiana), this step-by-step guide will walk you through the process.

Understanding the legal requirements and filing procedures for mechanics lien Louisiana is crucial. Recent changes in the law concerning notarization and the costs associated with preparing and filing a mechanics lien claim in Louisiana should be noted.

Filing a mechanics lien on your own can be complex and time-consuming. However, if you’re prepared to handle the task yourself, follow these detailed steps to ensure the lien is properly filed.

1. Before You File: Ensure You Qualify for Lien Rights

Louisiana’s lien laws can be confusing, and it’s essential to know whether you’re eligible to file. Different project roles, such as subcontractors or material suppliers, may have unique rules.

2. Send Required Notices

Louisiana has specific notice requirements depending on your role in the project:

• Contract with the Owner: If your contract exceeds $25,000, file a “Notice of Contract” before starting work to preserve lien rights.
• Contract with Owner-Occupant: Deliver a “Notice of Lien Rights” before work begins.
• Material Suppliers: For residential projects, send a “Notice of Non-Payment” at least 10 days before filing a lien.
• Equipment Rental: Send a “Notice of Lease” within 10 days of first delivering equipment to the site.

If you fail to send the required notice, you may lose your lien rights.

3. Prepare Your Louisiana Mechanics Lien Form

Make sure your lien is complete and meets the statutory requirements. Use a reliable mechanics lien form that is compliant with Louisiana law.

• Claimant Information: Include your full name or your business name.
• Owner Information: List the property owner’s name and any additional relevant details.
• Hiring Party: Provide the name of the party you contracted with.
• Lien Amount: Include the total unpaid amount for work or materials without additional fees like interest or damages.
• Description of Labor/Materials: Offer a clear and concise description of the work or materials supplied.
• Property Description: Include a full legal description of the property, such as lot number or township information.
• Signature & Witnesses: Two witness signatures are required, though notarization is not needed.

4. File Your Mechanics Lien in the Project’s Parish

The lien must be filed with the recorder of mortgages in the parish where the project is located. Filing deadlines vary depending on your project role and the presence of a Notice of Contract or Termination.

• Direct Contractors: File within 60 days of project completion or after a Notice of Termination.
• Other Participants: File within 30 or 60 days, depending on notice filing.
• Material Suppliers (Residential Projects): File within 70 days after completion or termination.

Practical Tips:

• Mail, Walk-In, or Electronically Record: Choose the appropriate filing method based on your parish’s requirements.
• Proper Recording Fees: Ensure the correct fees are included to avoid delays.
• Paper Size: Some parishes require 8.5” x 14” legal-size paper, so check before submitting.

5. Serve a Copy of the Mechanics Lien

After filing the lien, a copy must be served on the property owner. If you don’t have a direct contract with the owner, serve the general contractor as well. Best practice suggests notifying the owner even if it’s not required.

6. Steps to Take After Filing

• Release the Lien: Once you’re paid, the lien must be canceled upon the owner’s request.
• Foreclose on the Lien: If the lien expiration is approaching and you remain unpaid, consider filing a foreclosure action. Alternatively, sending a “Notice of Intent to Foreclose” may encourage payment.

By following these steps, you can ensure your lien rights are protected and increase your chances of receiving payment for your work

Electronic Filing and Delivery

In the digital age, the process of filing and delivering notices for a Louisiana mechanics lien has become more streamlined and efficient. Louisiana law permits the use of electronic means, such as email, for delivering notices, provided that the recipient consents to this method. To ensure that the delivery is considered served, electronic confirmation of receipt is required.

Email is often the preferred method for delivering notices due to its speed and convenience. It allows for a timely and accurate response, which is crucial in meeting the strict deadlines associated with lien claims. Additionally, the Louisiana Secretary of State’s office offers an online portal for filing and searching mechanics liens, making it easier for contractors and suppliers to navigate the process.

By leveraging electronic filing and delivery, you can simplify the mechanics lien process and ensure that all necessary notices are delivered promptly. This modern approach not only saves time but also enhances the efficiency of managing lien claims, helping you secure your payment rights more effectively.

Get in Touch

In Louisiana, filing a mechanics lien is an effective legal tool for contractors and suppliers seeking payment for their work. By following the proper steps, sending required notices, and meeting strict deadlines, you can protect your lien rights and ensure timely compensation. Filing a lien can be complex, but with this guide, you can navigate the process confidently and secure your payment rights.

At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We assist property owners in navigating the mechanics lien process, informing them about their rights and responsibilities, including providing notices, securing payment, and releasing mechanic’s liens.

We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a mechanics lien, give us a call or shoot us an email.