Need help in Montgomery County MD! ?

Question

I am a new contractor in Montgomery County MD and am having trouble with collecting payment for a project that has been completed. What is the best way to go about collecting payment?

I am an electrical subcontractor

the money is owed to me by the owner

the project is new home construction

Is there any county or state help available to me?

Answer 1

The short answer to your question is that you can file a "mechanic's lien" on the property.  This is usually a way to get the owner's prompt attention, especially since this is a newly-build home.  However, I have two important cautions for you.

First, filing a mechanic's lien is not hard, but there are a lot of little things to learn to make sure you do it right.  Especially since you are new at this, you should talk to an attorney about filing the lien.  There are notice and service requirements that must be followed carefully, or the lien will not stand.  Once you have done it, it should not be too hard to do it yourself.  If the amount you are owed means that it would be pointless to hire an attorney, then go to the County Courthouse in Rockville, go to the Clerk's office, and smile a lot as you ask for help on how to file. But it really makes sense to get a lawyer involved if you can.

Second, I don't need to tell you that everyone in construction is hurting these days.  Is there a general contractor?  He may be in financial trouble, which would explain why you haven't been paid as a sub.  The owner might not even know.  If it is the owner himself, then a mechanic's lien is definitely the way to go.  You do not want the house (finished or unfinished) to be sold off without you being paid.  That could easily happen in a foreclosure.  But if it is the general contractor, you may need to take him to small claims court.  Again, paying for some professional advice could be good investment, although you certainly do not need a lawyer to file a small claims action.

One more thing.  Is there any chance that there is fraud involved?  There is a difference between fraud and stupidity or simply running out of money.  But if you think that the general contractor or the owner never planned to pay you in the first place, it might be worth contacting the state's attorney's office, which is also in Rockville.

Obviously, there are a lot of facts I don't know, so this is the best answer I can give you under the circumstances.  I hope it helps, and I wish you well.  I have put a couple of Web pages in the Sources that will give you some general info about mechanic's liens, if you go that route.   Good luck!!