Amendment to the Georgia Mechanic's and Materialmen's Lien Statute

On March 31, 2009, the new Georgia Mechanic’s Lien Law (the “Georgia Lien Law”) became effective. The changes in the Georgia Lien Law will affect the way you use the Georgia Lien Law to secure your claims. The amendments to the lien statute (the “Statute”) are extensive and affect most its provisions, including the deadlines, the procedures for compliance, and also modifies the required forms that must be used for compliance.

The following is a brief summary of the changes in the Georgia Lien Law.

1. Time

   The modifications to the Statute extensively address how the statutory time periods are computed. It should be noted that the Statute continues to use the word “within” in describing the statutory time periods. Georgia case law has decided that the use of the word “within” in the Statute means that the day before is the last day for the required action. The amendment to the Statute has also added a new provision that makes allowance for the last day for compliance falling on Saturday, Sunday or holidays and extends the date to the next business day.

2. Notice to Contractor

   Your right to file a lien in Georgia may require that you first serve a statutory notice to contractor. If you do not work directly for the owner or the general contractor, you must investigate if the owner or general contractor has filed a notice of commencement concerning the work on the project. If a notice of commencement has been filed, then within 30 days following your first delivery or work, you must send a statutory notice to contractor to preserve your right to later file a lien.

   • The Statute changes the method for sending this notice and the time frame for compliance. The change to the notice to contractor provisions removed the word “give” from the Statute. Thus, it is now clear that the notice to contractor must simply be sent by registered or certified mail or by statutory overnight courier by the due date and delivery is not required by the due date.
   • The amended notice to contractor section of the Statute continues to require that your notice to contractors must be sent to the owner and to the contractor and identify the project based upon the information that is set forth in the notice of commencement. Therefore, you must use the information from the notice of commencement for this notice. If your notice to contractor does not use the correct information or is not sent by the required service methods to the correct addresses, your lien rights may be lost.
   • The amended notice to contractor section of the Statute provides for a helpful procedure for a request that the contractor send you a copy of the notice of commencement. The contractor is required to give you a copy of the notice of commencement within 10 days of its receipt of a written request. If you do not receive the notice of commencement in response to your request within the statutory 10-day period, then you are no longer subject to the defense to your lien that you failed to properly provide a notice to contractor.

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Rachelson & White, P.C., located in Atlanta, represents businesses and individual clients in areas such as College Park, Redan, North Atlanta, Smyrna, Mableton, Sandy Springs, Roswell, Marietta, Alpharetta, Cumberland, Fulton County, DeKalb County, Cobb County, and throughout the State of Georgia.