In Georgia, the concept of substantial completion is crucial for determining when a contractor is entitled to final payment and when warranty periods begin. Substantial completion is achieved when the work is sufficiently finished so that the owner can occupy or utilize the project for its intended purpose, even if minor punch list items remain. This is a factual determination based on the degree of completion and the nature of the remaining work. Georgia law, particularly as interpreted through case law and common contractual provisions, emphasizes that the uncompleted items must be minor and not impede the project’s overall functionality. For instance, if a building can be fully occupied and used for its intended business operations, but a few non-essential fixtures are yet to be installed, it would likely be considered substantially complete. The remaining work would then be addressed through the punch list process, and the owner’s obligation to make final payment would typically arise upon certification of substantial completion. The contractor remains obligated to complete the remaining minor items.

The Georgia Fair Business Practices Act (FBPA), O.C.G.A. § 10-1-390 et seq., prohibits unfair or deceptive acts or practices in the conduct of any trade or commerce. While the FBPA has a broad scope, it generally applies to consumer transactions. In the context of construction, the Georgia Supreme Court has held that the FBPA does not apply to purely commercial transactions between sophisticated business entities, such as a contract between a general contractor and a subcontractor for a commercial project, unless there is a clear consumer nexus. The rationale is that the FBPA is intended to protect consumers from deceptive practices, not to provide a remedy for breach of contract between businesses. Therefore, a claim for breach of contract alone, without an underlying deceptive act or practice directed at consumers, would not typically be actionable under the FBPA in a commercial construction dispute. The question asks about a scenario involving a commercial construction project between two businesses, making it a commercial transaction.

Georgia law, specifically the Georgia Mechanic’s Lien Statute, O.C.G.A. § 44-14-360 et seq., governs the rights of those who furnish labor, services, or materials to improve real property. A contractor who has a direct contract with the owner for improvements to residential property in Georgia is considered a “prime contractor.” Prime contractors are afforded lien rights to secure payment for their work. The statute requires that a Notice of Commencement be filed by the owner or prime contractor for improvements to residential property. This notice serves to inform potential lien claimants of the project and the parties involved. However, for non-residential property, the filing of a Notice of Commencement is not mandatory for a prime contractor to perfect their lien rights. The key distinction for a prime contractor on a non-residential project is the timely filing of a Claim of Lien within a specified period after the completion of the project or the abandonment of the project. For private works, this period is generally within three months after the claimant’s furnishing of labor, services, or materials. The lien must be filed in the superior court of the county where the property is located. The lien attaches to the real estate improved. The statute also outlines the procedure for foreclosing on the lien, which involves filing a lawsuit within a year after the claim of lien is filed. Failure to adhere to these statutory requirements, including the filing deadlines and proper content of the claim of lien, can result in the loss of lien rights. The question focuses on the lien rights of a prime contractor for improvements to non-residential property in Georgia, where the filing of a Notice of Commencement is not a prerequisite for the prime contractor’s lien.

In Georgia, the concept of “substantial completion” is crucial for determining when a contractor’s obligation to perform is substantially fulfilled and when payment is due. Substantial completion, as defined by Georgia law and common practice, means that a project has progressed to the point where it can be used for its intended purpose, even if minor, non-essential items remain unfinished. This concept is directly tied to the contractor’s right to payment, typically the final payment, as outlined in construction contracts. When a project achieves substantial completion, the contractor is generally entitled to the remaining contract balance, less the cost of completing any punch list items. The owner’s obligation to pay is triggered at this point, and the statute of limitations for claims related to defective work often begins to run from the date of substantial completion. It is not about absolute perfection, but rather about the project’s fitness for its intended use. The definition emphasizes the practical usability of the structure or improvement.

The scenario involves a contractor who has substantially performed their obligations under a construction contract in Georgia. Substantial performance means the contractor has completed the project to a degree that fulfills the essential purpose of the contract, even if minor deviations or omissions exist. Under Georgia law, when a contractor substantially performs, they are entitled to recover the contract price less any damages caused by the defects or omissions. The owner, in turn, has a right to damages for the cost of correcting the defects or the diminution in value caused by the contractor’s breach. The question asks about the contractor’s recourse when the owner refuses to pay the balance due after substantial performance. The contractor can file a lawsuit to recover the unpaid portion of the contract price. The available remedies would include the contract balance, potentially with interest, and possibly attorney’s fees if provided for in the contract or by statute in specific circumstances (though not generally presumed without a contractual or statutory basis). The contractor cannot unilaterally terminate the contract and walk away from the property as that would be abandoning their performance. They also cannot simply seize the property as collateral for the debt, as that would involve self-help remedies not permitted for construction contract disputes. While they might have a claim for unjust enrichment if they had not substantially performed, that is not the situation described. The core legal principle here is the contractor’s right to payment upon substantial performance, and the legal mechanism to enforce that right is a lawsuit for breach of contract.

Georgia law, specifically O.C.G.A. § 44-14-460, governs the enforcement of liens on real property. For a contractor to enforce a materialman’s or mechanic’s lien against real estate in Georgia, the lien must be filed within three months from the completion of the work or the furnishing of the materials. Following the filing of the lien, the lienholder must commence a legal action to enforce the lien within twelve months of the date the lien was filed. If this action is not commenced within the specified timeframe, the lien becomes unenforceable. In this scenario, the lien was filed on March 15, 2023. Therefore, the twelve-month period for commencing an enforcement action would expire on March 15, 2024. If no action is filed by this date, the lien is extinguished by operation of law.

In Georgia, the concept of substantial completion is critical for determining when a contractor has fulfilled their obligations under a construction contract, and when the owner’s obligation to pay becomes fully due, and the time for filing a claim of lien begins to run. Substantial completion is generally understood to mean that the work is finished to the extent that the owner can occupy or utilize the project for its intended purpose, even if minor punch list items remain. This standard is often defined within the contract itself, but if not, Georgia courts look to the contractor’s performance in relation to the overall project. The “substantial completion certificate” is a formal declaration that this milestone has been reached. Upon substantial completion, the contractor is typically entitled to the remaining balance of the contract price, less the cost to correct any minor defects. For lien filing purposes, the period generally commences from the date of substantial completion, not necessarily the date of final completion or abandonment. This distinction is crucial for contractors and subcontractors to preserve their lien rights.

In Georgia, a contractor’s lien rights are primarily governed by the Georgia Mechanic’s Lien Statute, O.C.G.A. § 44-14-360 et seq. For a general contractor to perfect a mechanic’s lien on residential property, specific notice requirements must be met. O.C.G.A. § 44-14-361.3 mandates that a contractor must provide written notice to the owner of the property at the time the contract is signed that a mechanic’s lien may be filed if the contractor is not paid. This notice must be in at least 12-point bold type and state: “NOTICE TO OWNER: THIS CONTRACT TO IMPROVE YOUR PROPERTY IS A CONTRACT FOR THE IMPROVEMENT OF YOUR PROPERTY AND IS BEING ENTERED INTO BY ONE WHO MAY BECOME ENTITLED TO A MECHANIC’S LIEN AGAINST YOUR PROPERTY UNDER GEORGIA LAW. TO PROTECT YOURSELF FROM HAVING TO PAY FOR THE SAME LABOR OR MATERIALS TWICE, YOU MUST REQUIRE YOUR CONTRACTOR TO PROVIDE YOU WITH A “PARTIAL LIEN WAIVER” FROM EACH MATERIAL SUPPLIER OR LABORER WITH WHOM YOU HAVE CONTRACTED. A GENERAL CONTRACTOR, OR A PRIME CONTRACTOR, THAT IS NOT PAID BY THE OWNER OR THE GENERAL CONTRACTOR, OR A SUBCONTRACTOR THAT IS NOT PAID BY THE GENERAL CONTRACTOR, OR BY THE OWNER IF THERE IS NO GENERAL CONTRACTOR, MAY ALSO HAVE A LIEN AGAINST YOUR PROPERTY.” Failure to provide this specific notice at the outset of the contract, when dealing with residential property, renders the general contractor’s mechanic’s lien invalid. The statute aims to protect homeowners from unexpected liens by ensuring they are informed of their rights and responsibilities from the beginning of the construction process. This proactive disclosure is a condition precedent for the contractor’s lien validity on residential projects.

In Georgia, the Georgia Fair Business Practices Act (FBPA), O.C.G.A. § 10-1-390 et seq., generally governs deceptive or unfair practices in consumer transactions. However, the FBPA has specific exemptions for certain regulated professions, including those involving construction services. The Georgia Contractor Registration Act, O.C.G.A. § 43-14-1 et seq., and related rules promulgated by the State Construction Industry Licensing Board, are the primary regulatory frameworks for contractors. These acts establish licensing requirements and standards of conduct for those performing contracting work. When a contractor performs work that requires a license under Georgia law, and they are unlicensed, they generally cannot recover payment for that work, even if the work was performed satisfactorily. This is a matter of public policy to protect the public from unlicensed and potentially unqualified individuals performing critical construction services. Therefore, a contractor performing work requiring a license in Georgia, but who is unlicensed, cannot sue for payment for that work.

In Georgia, a subcontractor who has not been paid for labor or materials furnished for the improvement of real property may have a claim of lien against the property. The Georgia law governing such claims is primarily found in the Official Code of Georgia Annotated (O.C.G.A.) Title 44, Chapter 14, Article 3. For a subcontractor to perfect a claim of lien, they must generally provide written notice to the owner of the property. This notice is often referred to as a “pre-lien notice” or “notice to owner.” The timing and content of this notice are critical. O.C.G.A. § 44-14-361.3 specifies that the notice must be sent within 30 days after the subcontractor furnishes labor or materials. The notice must include the name and address of the claimant, the name of the contractor, a description of the property, and a statement that the claimant has furnished labor or materials. Failure to provide proper notice can result in the loss of lien rights. Furthermore, the subcontractor must file a lien foreclosure action within 12 months after the date the lien was filed to enforce the lien. The lien attaches to the real property for which the labor or materials were furnished. If the property is sold before the lien is filed, the lien may attach to the proceeds of the sale. The statute also outlines specific requirements for the contents of the lien itself, including the amount claimed and a description of the labor or materials. Understanding these notice and filing requirements is paramount for a subcontractor seeking to secure payment through a mechanic’s lien in Georgia.

In Georgia, the prompt payment act, codified in O.C.G.A. § 13-11-1 et seq., governs timely payments for work performed on private construction projects. For a contractor to be entitled to retainage, the contract must explicitly allow for it. If a contract allows for retainage, the Act specifies the maximum allowable retainage percentage. For private projects, this maximum is typically 10% of the value of the work completed. The Act also outlines payment timelines. For undisputed amounts, payment is generally due within 30 days after the date of receipt of a proper invoice or within 7 days after the date of approval of the work by the owner, whichever is later. If the owner fails to make a payment when due, interest accrues on the unpaid amount at the rate specified in the contract, or if no rate is specified, at the rate of 1.5% per month, as provided by O.C.G.A. § 13-11-7. This interest is a penalty for delayed payment and is intended to compensate the contractor for the cost of capital tied up in the project due to the owner’s non-payment. The Act does not mandate retainage for all private projects; it is a contractual matter. However, if retainage is agreed upon, the statutory maximum applies.

In Georgia, the Georgia Little Miller Act, O.C.G.A. § 13-10-1 et seq., governs public contract surety bonds. For public works contracts exceeding $100,000, a payment bond is required to protect subcontractors and material suppliers. A claimant who has a direct contractual relationship with a prime contractor is generally considered a “prime contractor’s claimant.” Claims by subcontractors or material suppliers who have supplied the prime contractor are typically honored under the payment bond. The act specifies notice requirements for claimants. Specifically, a claimant who has supplied labor or materials to the prime contractor must give written notice to the prime contractor within 30 days from the date the claimant supplied the last of the labor or materials for which the claim is made. This notice is a prerequisite to bringing suit on the bond. The notice must state with substantial accuracy the amount claimed and the name of the party to whom the labor or materials were supplied. Failure to provide timely and proper notice can bar a claim. In this scenario, since Mr. Abernathy supplied materials directly to the prime contractor, he falls under the category of a prime contractor’s claimant and must provide the statutory notice to the prime contractor to preserve his claim against the payment bond.

The Georgia Little Miller Act, O.C.G.A. § 13-10-60 et seq., governs payment and performance bonds for public works projects in Georgia. For projects exceeding a certain threshold, contractors are required to furnish a payment bond to ensure subcontractors and material suppliers are paid. The Act specifies the conditions under which a claimant can bring a suit on the bond. A claimant, defined broadly to include those who have furnished labor, materials, or equipment for the prosecution of the public work, must provide written notice to the contractor within 90 days from the date the claimant last furnished labor, materials, or equipment. This notice must state the amount claimed and the name of the party for whom the labor, materials, or equipment was supplied. If the claimant has a direct contractual relationship with a subcontractor, they must also provide notice to the contractor. Failure to provide timely and proper notice generally bars a claim on the bond. The statute of limitations for filing suit on the bond is one year from the date of final settlement of the contract between the contractor and the public body. This one-year period can be extended by agreement but not beyond two years from the date of final settlement. The notice requirement is a condition precedent to recovery on the bond.

In Georgia, the Georgia Fair Business Practices Act (FBPA), O.C.G.A. § 10-1-390 et seq., governs deceptive or unfair practices in consumer transactions. While not exclusively a construction law statute, it can apply to residential construction and home improvement contracts if the practices involved are deemed deceptive or unfair to consumers. A common scenario involves contractors making misrepresentations about materials, timelines, or warranties. When a contractor engages in such practices, a consumer can pursue remedies under the FBPA. The statute allows for actual damages, equitable relief, and in cases of willful or knowing violations, treble damages or a minimum of \( \$500 \), whichever is greater. Additionally, the court may award reasonable attorney’s fees and costs to the prevailing party. The FBPA is a broad statute, and its application in construction disputes often hinges on whether the contractor’s conduct rises to the level of a deceptive or unfair act as defined by the law, which includes the omission of material facts that are likely to mislead. This contrasts with a simple breach of contract, which would typically be governed by contract law principles and remedies, such as expectation damages.

In Georgia, a subcontractor’s right to file a materialman’s lien is governed by Georgia law, specifically O.C.G.A. § 44-14-361 et seq. This statute outlines the requirements for perfecting such a lien. For a subcontractor to have a valid lien against the owner’s property, they must have provided labor or materials to improve the property under a contract with a contractor or another subcontractor. Crucially, the subcontractor must provide written notice to the owner of their intent to file a lien within 30 days of performing labor or furnishing materials. This notice is a prerequisite for filing the lien. If the subcontractor fails to provide this notice, their lien claim will be invalid. The lien must then be filed in the superior court of the county where the property is located within three months after the completion of the labor or the furnishing of the materials. The notice of lien filing must also be served upon the owner. The law distinguishes between those who contract directly with the owner and those who do not. Subcontractors are considered to have contracted with the contractor, not directly with the owner, hence the requirement for the preliminary notice to the owner. Failure to adhere to these notice and filing deadlines will result in the loss of lien rights.

Georgia law distinguishes between a “lien claimant” and a “materialman” in the context of construction liens. A materialman is specifically a supplier of materials, whereas a lien claimant is a broader term encompassing anyone entitled to assert a lien, which can include contractors, subcontractors, laborers, and materialmen. Under Georgia’s Prompt Payment Act (O.C.G.A. § 13-11-1 et seq.), which governs payment timelines in construction contracts, the definition of “contractor” typically refers to the party directly contracting with the owner. Subcontractors and materialmen are generally considered separate entities. The question probes the understanding of who qualifies as a “lien claimant” versus a more specific role like “materialman” when discussing lien rights and payment obligations under Georgia law. Specifically, a supplier of concrete to a subcontractor is considered a materialman, and by extension, a lien claimant, but not a contractor in direct privity with the owner. The correct option reflects this hierarchical and definitional understanding within Georgia’s lien statutes and prompt payment regulations.

In Georgia, a subcontractor’s right to file a materialman’s lien is governed by specific statutes. Generally, a subcontractor must provide notice to the owner and the general contractor within 30 days of the subcontractor’s first furnishing of labor or materials to the project to preserve their lien rights. This notice, often referred to as a “Notice to Contractor” or “Preliminary Notice,” is crucial for establishing priority and ensuring the lien is enforceable. Failure to provide this notice can result in the loss of lien rights. The lien itself must be filed within a specified timeframe, typically 90 days from the date the subcontractor last furnished labor or materials, or from the date of substantial completion or termination of the project, whichever is earlier. The lien must be filed in the superior court of the county where the property is located. The amount claimed in the lien must be for the value of the labor or materials furnished. The statute also outlines specific requirements for the content of the lien claim itself, including the name of the property owner, the contractor, a description of the property, and the amount claimed. The purpose of these notice and filing requirements is to provide timely notification to property owners and other stakeholders about potential claims against the property, thereby protecting the owner from unexpected encumbrances and allowing for proper accounting and payment procedures. Understanding these statutory timelines and notice requirements is paramount for subcontractors to effectively protect their financial interests in Georgia construction projects.

In Georgia, when a contractor performs work on a property and is not paid, they may have the right to file a materialman’s lien, also known as a mechanic’s lien, to secure payment. This right is established by Georgia law, specifically under O.C.G.A. § 44-14-361 et seq. A claimant who has furnished labor, services, or materials to a contractor or subcontractor for an improvement to real property can assert a lien against the property. The timing and procedure for filing such a lien are critical. For a contractor directly contracting with the owner, the lien must be filed within three months from the date the contractor’s work is completed or the contractor is removed from the job. For subcontractors or materialmen, the timing is also within three months of the last furnishing of labor, services, or materials, but importantly, they must also serve a written notice to the owner within 30 days of their first furnishing of labor, services, or materials. This notice requirement is a prerequisite for a subcontractor or materialman to enforce their lien against the owner’s property. Failure to adhere to these notice and filing deadlines can result in the loss of lien rights. The explanation focuses on the statutory framework and procedural requirements for establishing and enforcing a materialman’s lien in Georgia, emphasizing the importance of timely notice and filing.

Georgia law, specifically O.C.G.A. § 44-14-361.1, outlines the requirements for a contractor to bring a foreclosure action on a mechanic’s lien. A contractor must file a lien against the property within 90 days after the last material was furnished or labor was performed. Following the filing of the lien, the contractor has 365 days from the date the lien was filed to commence a legal action to enforce the lien. If the contractor fails to initiate this legal action within the specified timeframe, the lien is dissolved. This enforcement action typically involves filing a lawsuit to foreclose on the lien, seeking a court order to sell the property to satisfy the debt owed. The law also allows for service of process on the owner or other interested parties as prescribed by the Georgia Civil Practice Act. The purpose of this strict timeline is to ensure that property owners are not subject to indefinite claims and that lienholders act with reasonable diligence to pursue their rights. Failure to adhere to these statutory deadlines will result in the loss of the right to enforce the lien through foreclosure.

The Georgia Fair Business Practices Act (FBPA), O.C.G.A. § 10-1-390 et seq., is designed to protect consumers from deceptive or unfair practices in the marketplace. While it broadly prohibits such conduct, its application in the construction context often intersects with specific contractual agreements and statutory remedies available under Georgia’s mechanics’ lien laws and general contract law. A contractor who engages in a pattern of knowingly and intentionally misrepresenting the quality of materials used in residential construction, thereby deceiving homeowners about the value and durability of their homes, could be found to have violated the FBPA. This is because such actions constitute a deceptive act or practice in the conduct of consumer transactions. The FBPA allows for actual damages, punitive damages, and attorney’s fees for prevailing parties. The calculation of actual damages in such a scenario would typically involve determining the difference between the value of the home as represented and its actual value due to the substandard materials, or the cost to repair or replace the defective materials to meet the represented standard. Punitive damages are awarded to punish egregious conduct and deter future similar actions. Attorney’s fees are recoverable when the conduct is found to be willful or knowing. The FBPA does not preclude other remedies available at common law or under other statutes, such as breach of contract or negligence claims. The key is the deceptive nature of the contractor’s conduct in a consumer transaction.

In Georgia, the concept of “substantial completion” is critical for determining when a contractor is entitled to the final payment and when warranties typically begin to run. Substantial completion, as defined by Georgia law and interpreted through case law, occurs when a project is sufficiently finished so that the owner can occupy or utilize the intended purpose of the structure. This does not require absolute perfection; minor, easily correctable defects that do not impair the overall function or use of the building do not prevent a finding of substantial completion. The Georgia courts have consistently held that the test is whether the work is done in good faith and with reasonable diligence, and whether the defects are minor and can be remedied at a cost that is insignificant in relation to the total contract price. For instance, if a homeowner can move into the house and use all essential facilities, even if a few paint touch-ups are needed or a minor fixture requires adjustment, substantial completion is likely met. The contractor’s entitlement to final payment is then typically triggered, subject to any agreed-upon retainage. Conversely, if a defect is so significant that it prevents the intended use or requires extensive, costly repairs, substantial completion has not been achieved. This doctrine is crucial for managing cash flow for contractors and defining the end of the contractor’s responsibility for initial construction defects.

In Georgia, a subcontractor’s right to a lien on real property for labor or materials furnished to a project is governed by the Georgia Mechanic’s Lien Statute, O.C.G.A. § 44-14-360 et seq. For a subcontractor to perfect a lien, they must adhere to specific notice requirements. Primarily, O.C.G.A. § 44-14-361.1 mandates that a claimant who has not contracted directly with the owner must give notice to the owner within thirty days of filing the lien. This notice must include specific information, such as the name of the contractor and the owner, a description of the property, and the amount claimed. Furthermore, the claimant must file their lien within ninety days from the date the last material was furnished or the last labor was performed. The lien must then be filed in the superior court of the county where the property is located. Crucially, the claimant must also serve a copy of the lien upon the owner within ten days of filing the lien. If the owner cannot be found, service can be made by posting a copy on the property. Failure to strictly comply with these notice and filing requirements can render the lien invalid. Therefore, understanding the timing of both the notice to the owner and the filing of the lien, as well as the content of these notices, is paramount for a subcontractor seeking to enforce their lien rights in Georgia. The question focuses on the timeframe for providing the initial notice to the owner after filing the lien, which is a critical step in the lien perfection process.

In Georgia, a contractor’s lien rights are governed by the Georgia Mechanic’s Lien Law, primarily found in O.C.G.A. § 44-14-360 et seq. For a contractor to perfect a claim of lien against a residential property owner who contracted directly with the contractor, the contractor must provide a Notice to Contractor within 30 days of the contractor’s last furnishing of labor or materials. This notice must be sent by certified mail or statutory overnight mail to the owner at the owner’s residence or principal place of business. The purpose of this notice is to inform the owner of the potential for a lien being placed on their property. If the property is not residential, or if the contractor did not contract directly with the owner (e.g., a subcontractor), the notice requirements differ. Specifically, a contractor furnishing labor or materials to a contractor or subcontractor for improvements to real estate must give notice to the owner and the contractor. For residential properties, this notice must be given within 30 days of the last furnishing of labor or materials. Failure to provide the required Notice to Contractor can result in the contractor losing their lien rights entirely. The explanation focuses on the statutory requirement for a contractor dealing directly with a residential property owner in Georgia.

Georgia law, specifically O.C.G.A. § 44-14-361.1, outlines the requirements for perfecting a materialman’s lien. For a materialman to have a valid lien against a property owner for providing materials, they must file a “Sworn Statement” with the Clerk of Superior Court of the county where the property is located. This sworn statement must be filed within three months after the last of the materials were furnished or labor was performed. The statement must include the claimant’s name and address, the contractor’s name and address, a description of the property sufficient to identify it, and the amount claimed. Crucially, the statement must be accompanied by an affidavit from the claimant or their agent attesting to the correctness of the claim. Failure to meet these statutory requirements can render the lien invalid. The scenario involves a supplier who provided materials but did not file the required sworn statement with the appropriate county clerk within the statutory timeframe. Therefore, their claim against the property owner for the unpaid materials is not perfected. The law requires this specific filing to provide constructive notice to subsequent purchasers or encumbrancers and to establish the priority of the lien. Without this filing, the supplier’s recourse is typically limited to a claim against the party who contracted for the materials, not a direct lien against the real property itself.

In Georgia, the prompt payment act, codified in O.C.G.A. § 13-11-1 et seq., governs the timely payment of contractors and subcontractors on private construction projects. For a contractor to be entitled to retainage, the contract must specifically allow for it. Retainage is typically a percentage of the amount due to the contractor, withheld by the owner to ensure project completion and satisfaction of all obligations. If a contract allows for retainage, the owner can withhold this amount. However, the prompt payment act also sets deadlines for payments. For instance, payment for work performed is generally due within 30 days after the contractor submits a proper invoice. If the owner fails to make a payment within the stipulated timeframe, interest may accrue on the overdue amount. The question describes a scenario where a contract allows for retainage and the owner correctly withholds it from the monthly progress payment. The contractor has submitted an invoice for work completed, and the owner is within the statutory period to make the payment, minus the retainage. Therefore, the owner is not in violation of the prompt payment act by withholding the contractually agreed-upon retainage from the payment due for work performed. The act does not mandate that retainage must be paid immediately upon submission of an invoice if the contract specifies otherwise, as long as the base payment is made within the statutory timeframe.

In Georgia, the Georgia Lien Law, specifically O.C.G.A. § 44-14-361 et seq., governs the rights of contractors and subcontractors to place liens on real property for unpaid labor or materials. For a general contractor, the timeframe to file a claim of lien against private property is generally within 90 days from the date the contractor last performed labor or furnished materials. However, this is contingent on the contractor not having abandoned the project. For subcontractors, the timeframe is also generally 90 days from the date they last performed labor or furnished materials, but their notice requirements are more complex, often involving a Notice to Contractor within 30 days of first furnishing labor or materials. The question asks about the filing deadline for a general contractor who has completed their work and is awaiting final payment, implying no abandonment. Therefore, the 90-day period from the last furnishing of labor or materials is the operative timeframe. The scenario describes the contractor last furnishing materials on July 1st. Counting 90 days from July 1st, we arrive at September 29th. July has 31 days, so 30 days remain in July. August has 31 days. This accounts for 30 + 31 = 61 days. We need 90 – 61 = 29 more days. These 29 days fall into September. Thus, the 90th day is September 29th. The lien must be filed on or before this date.

Georgia law, specifically under the Official Code of Georgia Annotated (OCGA) Title 44, Chapter 14, Article 3, addresses mechanics’ liens, which provide a security interest for those who furnish labor, services, or materials for the improvement of real property. A general contractor, by definition, is a party who contracts directly with the owner for the improvement of real property. In Georgia, a general contractor who has a direct contract with the owner is entitled to a lien for the full amount of their contract, provided they have complied with the statutory requirements for filing and perfecting the lien. This includes filing a Statement of Claim within three months after the completion of the contract or the abandonment of the project, as well as providing notice to the owner. The lien attaches to the property improved. Subcontractors and materialmen, on the other hand, generally must provide notice to the owner within 30 days of furnishing labor or materials to preserve their lien rights, and their lien is typically for the amount owed to them by the contractor or subcontractor through whom they are claiming. The question asks about the lien rights of a party who contracted *directly* with the owner for improvements. This direct contractual relationship with the owner is the defining characteristic of a general contractor in the context of lien rights in Georgia. Therefore, the party described, having a direct contract with the owner for the improvement of real property, is considered a general contractor and has lien rights for the full contract amount, subject to statutory compliance.

The Georgia Little Miller Act, codified in O.C.G.A. § 13-10-60 et seq., governs public works construction contracts in Georgia. It mandates that contractors performing public works must furnish a performance bond and a payment bond. The performance bond ensures the contractor completes the project according to the contract terms, while the payment bond protects laborers and material suppliers who have provided work or materials to the project. A crucial aspect of the payment bond is the notice requirement for potential claimants. For those in direct contractual privity with the prime contractor, notice is generally not required to sue on the bond. However, for subcontractors and materialmen who are not in direct privity with the prime contractor (i.e., they have contracted with a subcontractor), a preliminary notice is mandatory. This preliminary notice must be sent by certified mail or statutory overnight delivery to the prime contractor within 30 days from the date the claimant furnished or performed the labor, services, or materials for which the claim is made. Failure to provide this preliminary notice generally bars a claim against the payment bond for those not in direct privity. The question scenario involves a plumbing subcontractor who supplied materials to a subcontractor on a state highway project. This subcontractor is not in direct privity with the prime contractor. Therefore, to maintain a claim against the prime contractor’s payment bond for unpaid materials, the plumbing subcontractor must have provided the required preliminary notice to the prime contractor within the statutory timeframe. The scenario states that the plumbing subcontractor did not send any notice to the prime contractor. Consequently, their ability to recover on the payment bond is extinguished due to the failure to comply with the notice provisions of the Georgia Little Miller Act.

In Georgia, the prompt payment act, codified at O.C.G.A. § 13-11-1 et seq., governs timely payment for work performed on private construction projects. Specifically, O.C.G.A. § 13-11-5 outlines the payment obligations of owners to prime contractors. An owner must pay the prime contractor within 30 days after receipt of a proper invoice. If the owner fails to make payment within this timeframe, interest accrues on the unpaid amount at the rate of 1.5% per month, or a pro rata amount thereof for a portion of a month. This interest is calculated from the date payment was due until the date payment is received. Therefore, if an invoice of $50,000 is due on May 1st and is paid on June 15th, the contractor is entitled to interest for the period from May 1st to June 15th. This period is 1 month and 15 days. The monthly interest rate is 1.5%. The total interest due would be calculated as follows: Interest = Principal x Rate x Time. In this scenario, the principal is $50,000, the monthly rate is 1.5% (or 0.015), and the time is 1.5 months. Interest = $50,000 * 0.015 * 1.5 = $1,125. This calculation reflects the statutory interest accrual for delayed payment under Georgia’s prompt payment act for private projects. The act aims to ensure that contractors receive timely compensation for their labor and materials, thereby promoting financial stability within the construction industry. The interest provision serves as a penalty for late payment and compensates the contractor for the time value of money and potential financial strain caused by delayed disbursements.

In Georgia, a contractor’s lien rights are governed by the Georgia Mechanics’ Lien Statute, O.C.G.A. § 44-14-360 et seq. For a general contractor to perfect a lien, they must file a claim of lien within three months after the completion of the contract or the furnishing of the last material or labor. This claim must be filed in the superior court of the county where the property is located. Crucially, a general contractor who contracts directly with the owner of the property generally does not need to provide pre-lien notice to the owner, as the contract itself establishes the privity. However, if the general contractor fails to file the lien within the statutory period, or if they fail to commence a foreclosure action within 12 months of filing the claim of lien, the lien is dissolved. The scenario describes a situation where the general contractor, having completed their work and been paid, discovers a latent defect. While the contractor has a contractual obligation to address defects, the lien rights for the original work are typically extinguished upon completion and payment, and the discovery of a latent defect does not automatically revive or extend the original lien filing period for the initial work performed. New work performed to correct a defect might create new lien rights, but the question pertains to the original contract and the timing of the initial lien filing. The contractor’s failure to file within the three-month window from the completion of the original contract means they have lost their right to file a lien for that work.