Mechanics Lien Claims

Can a contractor stop work if not paid?

Yes, usually the contract and Civil Code allow suspending performance if the counterparty fails to pay installments (defense of non-performance), provided you notify them properly.

Does Georgia have an automatic lien registry?

No. Unlike the US, you cannot simply record a lien at the registry against a property title without a court order, mortgage agreement, or specific contractual clause.

What if the developer goes bankrupt?

You must file a claim with the bankruptcy trustee immediately. Contractors are unsecured creditors unless they have a registered mortgage or court lien.

Can I sue for extra work not in the contract?

Yes, if you can prove the client requested or accepted the additional work (unjust enrichment or factual performance of work).

Reading Time

3 min

Published

...

Mechanics Lien Claims (known as contractor's or construction claims in Georgia) involve protecting the rights of builders, contractors, and material suppliers to receive payment for work performed. In the construction sector, it is common for a client (developer or private individual) to fail to pay after the work is completed. While Georgia does not have the exact US-style automatic "Mechanic's Lien" that attaches to the title without court action, the Civil Code provides robust mechanisms like "Right of Retention" and applying for court-ordered liens (seizure/attachment) on the property. This is a powerful legal tool allowing a builder to stop the alienation of the property or demand its sale to cover the debt. Legal.ge offers access to lawyers who help contractors recover owed funds and restrict property rights until payment is made.

What Do Construction Claim Services Cover?

The service is designed for construction companies, renovation teams, architects, and suppliers. It includes:

  • Debt Recovery for Work Performed: Filing a lawsuit to claim payment for completed work based on acceptance acts (Form #2).
  • Right of Retention: Retaining control over the site or refusing to hand over documentation until the client pays.
  • Interim Measures (Attachment/Lien): Placing a court-ordered seizure on the under-construction or finished property so the client cannot sell it before paying the debt.
  • Contract Termination and Damages: Disputes where the client groundlessly terminates the contract and refuses to pay expenses and lost profits.
  • Defect Disputes (for Clients): Protecting the client if the contractor demands payment but the work is substandard or incomplete.

Real-World Scenarios Where You Need This Service

For example, you are a window installation company that fitted windows in a new building. The developer promises payment but delays it while selling off apartments. You need a lawyer to immediately apply for an attachment on the remaining apartments or the building itself before they are sold to good-faith third parties. In another case, you built a private house, but the owner refuses the final tranche claiming they "don't like the color." A lawyer will help you prove via expertise that the work meets standards and compel the owner to pay.

Georgian Legal Framework

Georgia relies on the "Civil Code of Georgia" Articles 629-656 (Work Contract) and Article 688 (Contractor's Lien on movables). For real estate, the primary mechanism is the pre-judgment attachment (seizure) under the Civil Procedure Code. It is crucial that the contract stipulates staged handover of work. If the client refuses to sign the acceptance act, a lawyer can use forensic expertise to prove actual performance. There is no automatic statutory lien registration for real estate contractors without a court order or specific contract clause, making legal intervention essential.

The Process Step-by-Step

1. Documentation Audit: Reviewing the contract, budget, and performance acts. 2. Claim Letter: Sending a formal demand for payment. 3. Attachment Application: Asking the court to freeze the property to secure the claim. 4. Lawsuit: Filing the main action for debt recovery. 5. Expertise: Involving the Forensics Bureau to determine the value and quality of work if disputed.

Why Choose a Specialist on Legal.ge?

Construction disputes are technically complex. Timely action (freezing assets) is often the only way to save your money. On Legal.ge, you will find lawyers familiar with the construction industry who will help you get paid for your hard work.

Updated: ...

Specialists for this service

Loading...