In Massachusetts, the Notice of Contract is the first thing that you would file in order to perfect a mechanic's lien against a construction project to make sure that you are paid for the goods or services that you provided.
For the past 40 years, the construction lawyers at the Katz Law Group have helped numerous general contractors, subcontractors, and project owners and managers through this sensitive and important process.
What Does the Notice of Contract Do?
By filing a Notice of Contract, contractors initiate the process of securing a mechanic's lien against the property or construction project. This lien ensure that they are paid for the services that they provide: If the property owner does not pay for those services, the lien will encumber the property. If the property owner still does not pay, a lawsuit can be filed that, if not resolved outside the courtroom, would end with the forced sale of the property to satisfy the debt.
Who Can File a Notice of Contract?
Any general or subcontractor who has a contractual relationship directly with the property owner can file a Notice of Contract. That contract has to be in writing, though.
While you do not need to be licensed in order to file a Notice of Contract and secure a mechanic's lien on the property, enforcing that lien will take you through the court process, which will reveal your status.
How to File It
There are 2 steps for filing a Notice of Contract in Massachusetts:
- Drafting the Notice form, and
- Recording it with the state.
Massachusetts General Law Chapter 254, Section 4 provides an outline for drafting the Notice form. It includes the following information:
- The date of the contract
- The parties to the contract
- A description of the property
- The contract price
- The value of any agreed-upon or pending change orders
- The amount of the disputed claims
- Any payments that have been received
- The mailing address of the contractor filing the Notice of Contract
This form needs to be accurate. Any mistakes made in it can make the resulting mechanic's lien unenforceable.
Once drafted, the Notice of Contract must be brought or mailed to the Registry of Deeds in the county where the property is located. There will be a recording fee to pay.
When to File It
All of this must happen promptly, as there are statutory timelines that must be followed. Chapter 254, Section 4 states that the Notice of Contract can be filed any time after the execution of the written contract for goods or services, but before the earliest of the following:
- 60 days after the property owner filed a Notice of Substantial Completion,
- 90 days after the property owner filed a Notice of Termination, or
- 90 days after you last provided materials or labor to the project.
Massachusetts Construction Lawyers at the Katz Law Group
If you are interested in filing a Notice of Contract or a mechanic's lien to secure your right to payment in a construction project in central Massachusetts, call the Katz Law Group at (508) 480-8202 or contact them online.
