Hello. My company has a customer that has run into funding issues. Until the last invoice of over $100K, they had paid monthly draws valued at twice that amount promptly. They have recently asked for a payment arrangement for the outstanding balance owed. We have agreed on a 12 month payment plan, but nothing has been documented yet.
My question is in regard to Construction Lien Law and protecting the company, should payments stop after we have been off site for 90 days. They will not be paid in Full by the time our lien rights expire.
Does anyone have experience with this type of situation? Does having the customer sign a promissory note negate our ability to file a construction lien, unless the $ is paid within the 90-day timeframe? Do I need to record the promissory note?
Not sure how to proceed. Any information would be helpful.
Thanks!
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Suzanne Provagna
CFO
Shaw Construction & Management Co.
Livonia MI
(734) 425-6854
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