Our builder is threatening a lien and foreclosure on our new construction.

Among other requirements, to properly file and foreclose on a construction lien the contractor must (1) give you a sufficient and timely disclosure statement, and (2) must have filed the lien within 90 days of the last day the contractor worked on the project. Otherwise, the lien may be filed, but is likely defective and cannot be foreclosed upon.

When a contractor works for someone other than the property owner, a timely "pre-claim notice of lien" is required. Both the disclosure statement and the pre-claim notice of lien must follow a detailed format, and examples can be viewed on the Washington State Labor & Industries website. If a lien is improperly filed on your property, you have the right to move the Court to vacate the lien as improper or frivolous, and you can often be awarded your fees and costs in the process of defending against the lien.

If the Contractor has not addressed your punch list items, send a final demand requesting a meeting and requesting that the work be done immediately, and then allow a reasonable time for response (5-10 business days). If you do not receive a response, you almost certainly have the right to have the punch list items finished by another reasonably qualified and priced contractor, and then deduct that amount from the amount you owe the first contractor.

As you can see, it is in your contractor's best interests to communicate with you to resolve these issues, otherwise they risk not receiving their final payments at all.

Good luck. Mark Arend