If the owner of a project on which you’ve worked refuses to pay you, you may have several options. First, you can assert a mechanic’s lien against the premises, which will make it difficult for the owner to sell or finance the property. Mechanic’s liens are discussed below. There are strict timelines that must be followed to assert such a lien, so a builder should act promptly if payment is an issue.

Second, you can file a lawsuit for breach of contract, asking the court to order payment. Third, if the withheld payment constitutes retainage, it is possible that the owner has wrongfully withheld too much retainage in violation of the Kentucky Fairness in Construction Act. We have recovered funds due to our clients in just such situations and can assist you as well.

A mechanic’s lien is a right created by statute for a contractor, subcontractor or supplier who provides labor or materials for work to improve property when the person to whom he directly provided the labor does not pay him. If the contractor, subcontractor or supplier is not paid, and then takes the steps required by applicable statute, he can obtain a lien against the property on which he provided labor or materials. This lien makes the property owner ultimately responsible for the expenses of improving the property. If the lien is not paid, the lienholder may file a lawsuit to force the sale of that property in order to collect the amount owed.

There are different requirements and different remedies if the matter involves a public project funded with state or federal funds. For example, federal projects are subject to the Miller Act, which provides remedies against surety bond companies, and possibly contractors. You must strictly follow the legal requirement for filing a mechanic’s lien, or it will not be enforceable. Sullivan Mountjoy, PSC assists its clients in following all the necessary legal requirements to ensure they have an enforceable lien.

Most parties to a construction project have entered into a written contract, which sets forth the obligations and rights of the parties. The contract may also specify what one party should or must do if the other party breaches the contract. Many contracts specify certain steps a party must take to notify the other party of a breach or to present a claim for compensation for additional work a party must do because of actions of another contractor or unforeseen circumstances. Sullivan Mountjoy, PSC recommends that any party who experiences problems in a construction project immediately retain counsel to review the facts of the dispute and the contract provisions relevant to the dispute to ensure the party’s rights and remedies are protected.

There are several ways a plaintiff homeowner can recover for a defectively-built home. First, the owner can file suit for breach of contract or breach of warranty. Second, to the extent the defective construction has caused damage to the owner’s other property or an injury to a person, the owner can file a negligence claim. Finally, an owner can assert a claim under Kentucky law for any violation of the Kentucky Building or Residential Codes. If a homeowner succeeds on such a claim, he or she may recover attorneys’ fees and expert witness fees. We have experience prosecuting and defending claims under each of these theories and would be happy to discuss your situation with you.