Contractors & Subs · Getting Paid
Mechanic's lien or demand letter: which do you fire first?
A New York attorney's sequencing guide for contractors and subcontractors owed money.
Contractors owed money in New York hold two very different tools: a demand letter, which is fast and cheap, and a mechanic's lien, which is powerful and unforgiving about deadlines. The right answer is usually both, in the right order, and the order depends on one question: how much time is left on your lien clock?
Provided through DemandLetterNY.com, a service of Hochman Law PC.
First, check your lien clock.
NY LIEN LAW § 10 · FILING DEADLINES
A private-project mechanic's lien must be filed within eight months of the last date you furnished labor or materials, and within four months if the project is a single-family dwelling. These deadlines do not extend for negotiation, promises, or "the check is coming." Everything else in your strategy is sequenced around this date.
What each tool actually does.
- The attorney demand letter prices the dispute for the owner or GC: pay now, or face a lien on the property, a breach claim, and legal fees. It costs a flat fee, goes out in days, and resolves most disputes because the recipient's next call is to a lawyer who confirms your leverage is real.
- The mechanic's lien encumbers the property itself. It clouds title, alarms lenders, blocks refinancing and closings, and on many jobs freezes money that would otherwise flow down the payment chain. It must be verified, filed, and properly served, and it must later be enforced or extended: a lien is leverage with a maintenance schedule.
The usual sequence: letter first, lien before the buzzer.
With months left on the clock, a demand letter that explicitly previews the lien is the efficient first move: owners and GCs routinely pay to keep title clean. If the deadline is weeks away, invert it: preserve the lien first, then let the letter negotiate from behind it. The letter after a filed lien reads very differently: it is no longer a threat but an offer to release.
If your dispute is a taken deposit, different rules add fuel.
Homeowner-side disputes: a contractor who took your deposit and vanished: run through different statutes, including the trust-fund rules covered in contractor took your deposit and home improvement disputes. This page is for the other chair: the contractor or sub who did the work and hasn't been paid.
Don't skip the letter just because you can lien.
A lien without a demand letter often just sits there while relationships burn. A letter without a lien can expire your best leverage. The combination: letter now, lien preserved in time, both citing the same computed number: is what turns "we'll get to it" into a wire transfer. Deadlines beyond the lien are mapped in how long you have to act.
A flat-fee demand letter drafted and signed by a New York attorney often resolves it without a lawsuit. Start online at DemandLetterNY.com, a service of Hochman Law PC, or learn more about flat-fee demand letters.
Questions people ask us.
Can I file the lien myself?
You can, but New York lien formalities (verification, contents, service, and the exaggeration rules) are strict, and a defective or willfully exaggerated lien can be voided or create liability. Given what's at stake, attorney preparation is cheap insurance.
Does sending a demand letter extend my lien deadline?
No. Nothing extends it except the statute's own terms. Calendar the eight-month (or four-month) date the day you leave the job, and sequence the letter inside it.
I'm a sub and the GC got paid but stiffed me. Who do I pursue?
Potentially both: the GC on your contract, and the property via the lien. Funds the GC received for your work may also be statutory trust funds under Lien Law Article 3-A: powerful leverage a letter can invoke.
How long does a filed lien last?
Generally one year unless extended or enforced by foreclosure action. A lien is not fire-and-forget; it is leverage you must maintain, which is part of why the demand letter usually resolves things first.
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