Have you provided labor or materials to a construction project in South Carolina? Has your customer failed to send payment? If so, you may be thinking about filing a Mechanics Lien; however, before you file a Mechanics Lien to collect payment for labor and/or materials furnished on a construction project in South Carolina, you need to have a basic understanding of the provisions outlined in the South Carolina Lien Law. Failure to comply with a single statute in the law could cause you to forfeit your Mechanics Lien rights and lose the opportunity to collect on unpaid projects. In order to help you understand your Mechanics Lien rights in the state of South Carolina, we’ve outlined the basis provisions you need to be aware of prior to filing and serving a Mechanics Lien.
Keep in mind that this article is not intended to be a full representation of the law but merely a summary of the key facts you need to know about filing a Mechanics Lien in the state of South Carolina.
- South Carolina provides Mechanics Lien protection for many parties.
In comparison to the other 50 states, South Carolina has fairly broad Mechanics Lien protection. According to South Carolina Lien Law, any party who furnishes labor and/or materials used in the “erection, alteration, or repair of a building or structure” or for the “improvement of real property” is entitled to Mechanics Lien protection. This includes contractors, subcontractors, design professionals (engineers and architects), surveyors, laborers, equipment lessors, and – in some cases – even security guards. - All subcontractors are required to file a Notice of Furnishing.
If you contracted with a party other than the Property Owner (say the General Contractor), you must prepare and serve a Notice of Furnishing Labor or Materials to the General Contractor at the beginning of the project. It’s important to note that this is not a Preliminary Notice; it is a notice to reveal the presence of third tier subcontractors and suppliers on the job. If provided, the Notice of Furnishing acts as a payment defense at the primary level (Owner – General Contractor) rather than the secondary level (General Contractor – Subcontractor). - If you’re a General Contractor, it’s a good idea to file a Notice of Commencement. While it is not a requirement for filing a Mechanics Lien, if you wish to regain payment and receive protection under South Carolina’s Lien Law, you should file a Notice of Commencement. General Contractors can file a Notice of Commencement with the Clerk of the Court or Register of Deeds for the county in which the property is located. The Notice of Commencement must be filed within 15 days of the commencement of the work.
- The deadline to file a Mechanics Lien is 90 days.
Under South Carolina Lien Law, you have 90 days from the date you last provided labor and/or materials to the project to File and Serve a Mechanics Lien unless you receive a call-back to perform additional services or last minute materials. In the case of a call-back, your Mechanics Lien must be Filed and Served within 90 days from the date call-back work was performed. This is a unique policy of the South Carolina Lien Law, as most states typically deem this type of work as not lienable.
These are just a few key provisions included in South Carolina’s Mechanics Lien Law. For a full understanding of how you can fully protect your Mechanics Lien Rights, hire a Preliminary Notice and Mechanics Lien Service to prepare and serve your South Carolina Notice of Commencement, Notice of Furnishing, and Mechanics Lien. Using such a service will ensure that the proper research is done so you don’t have to forfeit your Lien Rights due to any misinformation.
CRM Lien Services will thoroughly research and verify all of the information included in your Notice of Commencement, Notice of Furnishing and Mechanics Lien so your Lien Rights are fully protected. We stay current with the changes to the South Carolina Lien Law so your notices are prepared according to the latest statutes.
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