How is the lien period affected if the Owner files a Notice of Completion?

When an Owner files a Notice of Completion, it triggers a change in the lien period for contractors and subcontractors involved in a construction project. Specifically, the filing of a Notice of Completion shortens the time frame available for prime contractors and subcontractors to file a mechanics lien.

Typically, without a Notice of Completion, the lien period may last several months from the completion of work. However, once a Notice of Completion is filed, the timeline is condensed significantly. For prime contractors, the lien period usually reduces to 60 days from the date the Notice is recorded, while subcontractors, who might have originally had longer periods to file, also benefit from this reduction.

This mechanism is designed to provide clarity and closure to the project by encouraging faster resolution of payments and disputes. It’s important for contractors and subcontractors to be aware of this change, as it can influence their decision-making regarding lien filings and prompt them to take action sooner.