Frequently Asked Questions - Louisiana Mechanics Lien
Louisiana Lien Documents are Easy to File with LienItNow.com
Why LienItNow?
LienItNow.com provides online mechanics lien forms to help contractors, sub-contractors, and suppliers secure the payment they need. In three simple steps, complete your mechanics lien on your own time in only 10 quick minutes. Once a time-consuming process for construction companies, LienItNow.com makes filing your mechanics lien faster and easier than ever. LienItNow.com can also help you create bond claims, pre-lien notices and lien releases.
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What is a Louisiana mechanics' lien Claim?
In Louisiana, liens filed on private property or on funds relating to a public project are known as a Louisiana Statement of Claim and Privilege and Sworn Statement of Amounts Due. When a Louisiana mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property.
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Who can file a Louisiana mechanics' lien Claim?
Contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers can file a Louisiana mechanics lien. If a company supplies material to a material supplier, they are not eligible to file a Louisiana mechanics lien claim. Trustees and trust funds can enforce claims for funds owed under collective bargaining agreements, unless the project is designed or intended to be occupied primarily as a residence by four families or less.
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Can a Louisiana lien be filed on Public Projects?
Yes. Louisiana construcution lien claims on public projects are known as Sworn Statements of Amounts Due and are available to a furnisher of labor or materials to an owner, contractor, or subcontractor. This includes those renting or leasing equipment to the owner, contractor or subcontractor.
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Are pre-lien notices for a Louisiana mechanics' lien Claim required?
Yes. The following requirements apply, depending on your relationship to the Project:
Private Projects:
General contractor: In order to secure lien rights, prior to beginning work, all general contractors must file a Notice of Contract, signed by the Owner, unless the general contractor's contract amount is less than $25,000.00. If the general contractor fails to file a Notice of Contract for contractors larger than $25,000.00, it will have no lien rights. On single family residences, the general contractor must also deliver a Notice of Lien Rights to the Owner prior to commencing work.
Subcontractors or sub-subcontractors: Prior to filing a lien claim, a Notice of Non-Payment and Intent to Lien must be filed. Anyone who would like to be provided with a notice of termination, abandonment or substantial completion must send a prelien notice (Notice of Performance of Work). This is important because in many cases, termination, abandonment or substantial completion trigger the time in which a construction lien must be filed. On public projects, a Notice to Contractor is also required in order to secure lien and bond rights. This is in addition to filing a Notice of Nonpayment and Intent to Lien, as well as any required prelien notices.
Materials Suppliers: A Notice of Nonpayment and Intent to Lien must be filed at least ten days before filing a statement of claim and lien.
Equipment lessors: Equipment rental suppliers must deliver a Notice of Furnishing not more than ten days after the equipment is delivered to the Project. Equipment lessors must also provide a final notice (Notice of Nonpayment) prior to filing a lien.
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When should a Louisiana mechanics' lien Claim be filed?
For a contractor in privity with an owner, a Notice of Contract should be filed before work begins. If the Notice of Contract is filed, a contractor has 60 days from the filing of a Notice of Acceptance to file a Louisiana mechanics lien. If no Notice of Contract has been filed, a contractor has 60 days from completion on the project to file a Louisiana mechanics lien if the contract amount is less than $25,000. If the contract amount is greater than $25,000, and the Notice of Contract is not filed, the prime contractor has no lien rights. For a subcontractor, if a Notice of Contract has been filed, he has 30 days from the filing of a notice of acceptance to file the Louisiana mechanics lien. If no Notice of Contract has been filed, a subcontractor has 60 days from either the filing of a notice of termination or the substantial completion or abandonment of the work to file the Louisiana mechanics lien claim.
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How much does it cost to file a Louisiana mechanics' lien Claim?
LienItNow.com prepares, files and serves Louisiana mechanics' liens. Please see our pricing page for more information.
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How does filing a Louisiana mechanics' lien Claim help me get my money?
On a private project, the Louisiana mechanics' lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the Louisiana mechanics lien.
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What is a Notice of Contract and why should it be filed?
LienItNow.com prepares and serves Louisiana Notices of Contract. To curb second tier and third tier lien rights and protect the owner and contractor, a Notice of Contract must be filed before the work begins.
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What is a Louisiana Stop Notice and why should it be filed
LienItNow.com prepares and serves Louisiana Stop Notices. A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic's lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid
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What is a Louisiana Amendment to a mechanics' lien Claim?
LienItNow.com prepares, files and serves Louisiana Amendments to mechanics' lien Claims. Amendments to a mechanics' lien claim are often needed when something about the claim changes. Common changes to a lien claim are increases or reductions in the amount due to the lienor, or a change to the last date of work.
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When should a Louisiana Discharge of mechanics' lien claim be filed?
LienItNow.com prepares, files and serves Louisiana Discharges of mechanics' lien Claims. Once the lienor has been paid the amount contained in its lien claim, or has come to an agreement that requires the lien claim to be removed from the property records, a Discharge of mechanics' lien Claim should be filed.
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How much does it cost to file a Louisiana Extension of a mechanics' lien Claim?
LienItNow.com prepares, files and serves extensions of mechanics' lien Claims. All lien claims expire after a certain period of time, and filing an extension of the mechanics' lien claim prolongs the expiration date. Not all states allow the filing of extensions of mechanics' lien claims.
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Can I file a Bond Claim on a Louisiana Project?
LienItNow.com prepares, files and serves Louisiana Bond Claims. Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project. The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants' last date of work. Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.
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Do I need to file a Pre-Notice to make a claim against a Louisiana payment bond?
Yes. LienItNow.com prepares, files and serves Louisiana Pre-Notices for bond claims. Depending on the terms of the payment bond, pre-notices may or may not be required. LienItNow.com recommends that, prior to or immediately after starting work or delivering materials to a project, subcontractors and suppliers, file a pre-notice that it is a potential beneficiary of the construction project's bond.
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