What are the legal remedies available when a contractor fails to pay?

In Maine, when a contractor fails to pay, a legal remedy is available. This remedy is called a mechanics lien and it allows a party, typically a subcontractor, who has provided labor or materials to a construction project to secure payment by placing a claim on the project property. When a contractor fails to pay, the lien provides legal protection for the unpaid party to secure payment from the owner or lender. The legal process begins with the unpaid party giving the contractor a notice of intent to file a lien. The notice gives the contractor and owner thirty days to pay and includes details about the amount owed and when it is due. Once the time for payment has passed, the unpaid person is then able to file a lien with the county registrar of deeds. The mechanics lien must include the claimant’s name and address, a description of the services performed or materials supplied, the amount of money owed, and other details. Once the lien is filed, it will be listed on the title of the property, and if the contractor still fails to pay, the unpaid party can then file a lawsuit to foreclose on the property and force payment. This process can be time consuming and costly, making it important for contractors and owners to ensure that payment is made in a timely manner.

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What are the legal remedies available when a contractor fails to pay?

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