It isn’t always clear what needs to happen to make your lien valid, especially when a simple “Lien Laws” Google search could lead you to any state’s ruleset. You need to find your specific state’s laws, but with all of the variations out there, this can get complicated. Worry not! We’re here to take away the complexity and confusion and give it to you straight. If you work in Louisiana and need to know the construction lien laws, this is the spot for you. Here, we break down exactly what the state of Louisiana requires of you to properly file a valid lien or bond claim.
How to File a Valid Bond Claim on a Public Works Project in Louisiana:
On every public project over $25,000, there must be a payment bond. To have a claim on a public works bond you must:
- File a sworn statement of the amount you are due with the public entity having the work done and the Parish where the work was being done.
- This statement must be filed within forty-five (45) days of the public entity filing an acceptance of work or notice of default.
- If you are not hired by the Place 1* Contractor, you must also send notice to the Place 1* Contractor within the same forty-five (45) day time period.
How to File a Lien in Louisiana:
The time frame for filing liens is based on whether or not a notice of contract has been filed. A notice of contract is required to be filed on a contract amount of more than $100,000.
Filing a Lien if a Notice of Contract Has Been Filed in Louisiana:
- Place 2* or below Contractors and/or material suppliers have until thirty (30) days after a notice of termination of work has been filed, to file their liens.
- Place 2* or below Contractors also have to send the Place 1* Contractors notice of the lien being filed.
- Place 1* Contractors have sixty (60) days after a notice of termination of work has been filed to file their liens.
Filing a Lien if a Notice of Contract Has Not Been Filed in Louisiana:
- Place 2* or below Contractors and/or Material Suppliers have until sixty (60) days from the letter of substantial completion or a notice of termination of work has been filed, to file their liens.
- Place 2* or below Contractors also have to send the Place 1* Contractor notice of the lien being filed.
- Place 1* Contractors can only file a lien if the contract amount is under $100,000. If not, they cannot file a lien (punishment for not filing the notice of contract if more than $100,000).
- You must move to enforce your lien within a year of being filed or it will expire.
If you work in Louisiana, it is integral to the protection of your business that you master filing a valid construction lien. It is the only way to have leverage in favor of you getting properly paid. If you want to become a Louisiana Lien master on your own, listen in to this episode of The Quit Getting Screwed Construction Podcast. If you’d like someone else to take care of filing your lien, and do it the right way, contact an experienced Louisiana lien lawyer who knows construction law. Our sister company, The Cromeens Law Firm, has a 90% success rate of collections before having to foreclose on a lien, saving you costly legal fees. Better your business by putting these laws into practice before it’s too late.
*The “places” referenced in the rules above correlate to the Construction Food Chain Chart from Karalynn Cromeens’ book,
Quit Getting Stiffed. The chart can be found here to use when following these lien and bond rules.