Construction companies operating in Idaho may pursue payment from clients in multiple ways. However, collecting on debts can sometimes be a very difficult and even protracted process. The law also imposes numerous restrictions on certain debt collection efforts.
For those in the Idaho construction industry, a mechanic’s lien could be a way to compel a non-paying client into compliance. However, those attempting to record and perfect a lien after doing work or providing materials for a construction project must carefully comply with all statutory timelines, requirements, and processes.
Businesses only have six months to enforce construction liens
In Idaho, your company only has 90 days after the delivery of materials or the substantial completion of its work on a project to take legal action. Waiting too long will invalidate your lien.
Your company also must file a complaint to foreclose its lien within six months of the date the lien was recorded. While it makes sense to allow your client an opportunity to pay outstanding amounts or make arrangements to do so before filing a lien foreclosure action and incurring substantial attorneys’ fees, waiting too long may be devastating.
To enforce your lien, you must file a lawsuit to foreclose the lien within six months of the date the lien was recorded. Failure to do so within six months invalidates your lien.
In Idaho, subcontractors and suppliers cannot sue property owners for amounts they are by a general contractor. Instead, they must sue the general contractor or file a mechanic’s lien to secure the amounts they are owed against the real property on which the project is located. While this may be a difficult business decision, it may be the only way for you to get paid. Do not wait to long to consult your attorney about recording or foreclosing your lien if you have not been paid for labor performed or materials supplied on a construction project.
