As a contractor performing work in Georgia, it is imperative to stay on top of Georgia’s statutory lien framework in the event any payment issues arise. Georgia lien law requires specific steps with deadlines. The laws change from time to time, including a significant amendment to the Mechanics’ and Materialmen’s Lien Statute, O.C.G.A. § 44-14-366, that went into effect this year, meaning the framework should routinely be reviewed.
As a contractor, if you submit a request for payment for work on a project and asked to sign a lien waiver, make sure you record a timely Affidavit of Non-Payment in the event you do not receive payment. This step is critical and must be done within 90 days of signing the lien waiver. If a contractor signs a lien waiver and fails to follow the required statutory procedure to contest payment, any lien rights will be deemed released. As clarified by the amendment noted above, in the event a contractor signs a lien waiver and fails to timely contest payment, the contractor cannot record a valid lien to obtain payment but could still pursue contractual or equitable claims.
If you have questions or are uncertain about your rights and obligations, please let us help you navigate this situation.
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