A Noblesville excavating company with twelve employees completes site work on a Marion County retail build-out in early March, and the final invoice is fifty-eight thousand dollars. The customer stops returning calls in April, raises a general complaint about grading in May, and by June the owner is weighing whether the receivable justifies hiring a lawyer. By that point the most useful remedy an Indiana construction company has may already be gone, because the mechanic’s lien deadline runs from the last day on site rather than from the date of the invoice.
Contractors who collect tend to protect the lien deadline first and negotiate afterward. The order matters because every other remedy remains available months later, while the lien does not. What follows takes the steps in the sequence that preserves the most options.
How long do I have to file a mechanic’s lien in Indiana?
Generally ninety days after the last day labor, materials, or machinery were furnished, and sixty days for work on a single or double family dwelling. The claimant records a sworn statement and notice of intention to hold a lien in the recorder’s office of the county where the property sits. Both periods are strict, and Indiana does not permit an untimely lien to be revived.
The clock runs from last furnishing, so track the last day on site rather than the billing date. Punch list and warranty work produce arguments about when the period began, and those arguments are easier to avoid than to win. The recorded notice must set out the amount claimed, the claimant’s name and address, the owner’s name and latest tax record address, and a legal description, and defects in those details give an owner grounds to challenge the lien.
Residential work carries an additional requirement that suppliers and subcontractors miss regularly. A person furnishing labor or materials on credit for the alteration or repair of an owner-occupied single or double family dwelling, dealing with someone other than the occupying owner, must give that owner written notice of the delivery and of lien rights within thirty days of first furnishing. On the original construction of a single or double family dwelling intended for owner occupancy, the notice goes to the owner and is filed with the county recorder within sixty days. Both requirements operate as conditions precedent, which means a missed notice defeats the lien entirely.
Recording the lien starts a second period. A foreclosure action must be filed within one year, and an owner or other interest holder can compress that by serving a written notice to commence suit, after which a lienholder who fails to file within thirty days loses the lien. Indiana entitles a lienholder who recovers a judgment to reasonable attorney fees, subject to a limit protecting an owner who already paid the contract consideration, so an owner who paid the general contractor in full is a harder target.
A lien is a powerful remedy that carries exposure in both directions. An overstated or defective lien can support a claim against the claimant, and Indiana imposes statutory damages on a lienholder who fails to release a satisfied lien within fifteen days of a demand. Public property cannot be liened at all, and payment protection on public projects runs through the required payment bond under deadlines set by the statutes governing that public authority. Recording a lien is a legal filing rather than a collection letter, and it warrants the same care.
What to gather while the deadline is protected.
Pull the signed contract, every change order, all payment applications, daily reports, photographs, and delivery tickets. Two questions govern the next step: what the contract says about payment timing and notice, and whether you can document that the work was performed and accepted. Contracts frequently carry claim deadlines that run independently of any statute, and Indiana courts have enforced those provisions to bar claims for extra work regardless of the merits.
A written demand resolves more construction receivables than contractors expect. It should state the amount owed, itemize it, attach supporting documents, and set a firm response date. Keep the tone businesslike, because the letter frequently becomes an exhibit, and a demand from counsel signals that the next step is imminent.
Distinguish between a customer who cannot pay and one who will not, because the two call for different approaches. The first situation deteriorates while you wait, since other creditors are working the same problem on the same assets. Where the customer is a business, an entity search through the Indiana Secretary of State confirms who you are dealing with and whether the company remains in good standing.
Subcontractors have a second remedy when the lien window closes.
Subcontractors and suppliers who hold no contract with the property owner have a statutory remedy that operates outside the lien deadlines. The subcontractor serves the owner with written notice setting out the amount of the claim and the services rendered, and stating that the subcontractor holds the owner responsible. The owner then becomes liable for the claim, limited to the amount due or later becoming due from the owner to the general contractor.
That limitation governs the practical value of the notice. If an owner still holds two hundred thousand dollars for the general contractor when a notice claiming one hundred fifty thousand arrives, the owner must withhold enough to satisfy the claim before releasing further funds. If the owner already paid in full, the notice reaches nothing, and because the remaining funds shrink as a project closes out, the notice is worth sending as soon as payment slips.
A personal liability notice and a mechanic’s lien are separate remedies, and pursuing one does not surrender the other. Subcontractors who have missed a lien deadline sometimes assume no leverage remains against the owner, which is not correct. Have counsel evaluate both before writing off the receivable.
Contract claims, and the residential complication.
A breach of contract claim is the backstop where lien and bond remedies are unavailable or insufficient. Where no enforceable contract covers the work, Indiana recognizes unjust enrichment, which permits recovery of the reasonable value of labor and materials when it would be unfair to allow the other side to retain the benefit without paying. Those claims ordinarily travel together in construction collection cases. Indiana also has two limitation statutes for written contracts, and Indiana courts have not definitively resolved which governs a construction contract, so the shorter of the two is the safer planning assumption.
Residential collection carries a complication that commercial collection does not. Indiana’s home improvement statute requires a written contract signed by both parties for residential work exceeding one hundred fifty dollars, and it treats a violation as a deceptive act under the state’s consumer protection law. Our Court of Appeals has set aside damage awards in favor of contractors who violated the statute, including a 2024 decision vacating a well driller’s judgment because he had worked under an oral agreement. In another case a roofing contract was declared void because the contractor solicited the work before holding a required local license and failed to pull a permit, and the contractor lost his contractual right to attorney fees along with the contract.
The picture is not uniformly bleak for contractors. In that same roofing case the contractor recovered the reasonable value of the work under an unjust enrichment theory, together with prejudgment interest, because the homeowners had received the improvements without complaint about the workmanship. Other decisions have vacated the award without addressing that alternative. The statute also reaches repair work funded by a homeowner’s insurance carrier, which covers much of the restoration work performed in central Indiana. A residential contractor should have the paperwork reviewed before filing anything, because a suit or a lien can draw a counterclaim built on the contractor’s own contract.
Where a case proceeds, the amount and county determine the forum. Smaller claims can go on a small claims docket, which in most Indiana counties handles disputes up to ten thousand dollars, while Marion County operates nine township small claims courts under separate rules and limits worth confirming first. Larger claims go to the circuit or superior court, where discovery is available and the process is slower. Our article on what a construction dispute involves once it reaches litigation describes that process, and the piece on enforcing a construction contract in Indianapolis covers the enforcement options in more depth.
When to involve counsel about an unpaid construction bill.
The value of legal advice declines sharply once deadlines pass, so the timing of the call matters more than the size of the receivable. A contractor who calls in the first month usually has more options than one who calls in the fourth. Several triggers justify a conversation the same week:
- You are within thirty days of the sixty or ninety day lien deadline on any unpaid project.
- The customer disputes the quality of the work after accepting it and occupying the space.
- A general contractor reports that the owner has not paid and points to a contingent payment clause.
- The customer is a business showing financial distress, or has stopped communicating.
- You received a notice to commence suit on a lien you already recorded.
- The unpaid amount consists of change orders that went unsigned.
- The job was residential and your contract or licensing paperwork may not have complied with the statute.
Reviewing your documentation before filing is a short exercise that occasionally changes the entire approach, particularly on residential work. The review costs little and it identifies problems while they can still be addressed. Our post on common mistakes small contractors make covers the contract problems that surface at this stage.
Frequently asked questions about getting paid for construction work in Indiana.
How long do I have to file a mechanic’s lien in Indiana?
Generally ninety days after the last day you furnished labor or materials, and sixty days on single and double family dwellings. The claimant records a sworn statement and notice of intention to hold a lien with the recorder in the county where the property is located. The period runs from last furnishing rather than from the invoice date, and missing it eliminates the lien remedy.
Can I file a mechanic’s lien if I did not have a written contract?
Indiana’s lien statute covers labor and materials furnished for the improvement of real property and does not condition the lien on a written agreement, though proving scope and amount is harder without one. Residential work still requires the applicable pre-lien notice, which functions as a condition precedent. A missing written contract may also affect the underlying claim under Indiana’s home improvement statute, so review that with counsel before filing.
What happens if I miss the sixty or ninety day lien deadline?
The lien remedy is gone, and Indiana does not permit an untimely lien to be revived. Other paths remain, including a breach of contract claim, an unjust enrichment claim, and, for subcontractors and suppliers, a personal liability notice to the owner. Those alternatives are weaker because they do not attach to the property, so a missed deadline changes the leverage more than the merits.
Can I charge interest or late fees when a customer does not pay?
Ordinarily only where the contract provides for it, and the enforceability of a particular rate depends on the terms and on whether the customer is a consumer. Adding charges that appear nowhere in the signed agreement invites a dispute about the entire invoice, though Indiana separately permits prejudgment interest in some circumstances once a claim reaches court. Confirm with counsel before assessing anything the contract does not authorize.
Can I recover my attorney fees if I have to sue to get paid?
In a mechanic’s lien foreclosure, a lienholder who recovers a judgment is entitled to reasonable attorney fees, subject to an exception protecting an owner who has already paid the contract consideration for the labor or materials. On a breach of contract claim, fees are available only where the contract provides for them, which is one reason a fee-shifting clause belongs in every construction contract. On residential work, a statutory violation can cost the contractor that fee right entirely.
Can I stop work if a customer stops paying?
Review the contract before pulling the crew, because most construction contracts address suspension and impose notice requirements that have to be satisfied first. Walking off without following those steps can convert your payment claim into the other side’s breach claim. Stopping work also fixes your last day of furnishing, which starts the lien clock. A short conversation with counsel before the trucks leave costs less than the alternative.
What can I do if the general contractor was paid but did not pay me?
Protect the mechanic’s lien deadline first, because that remedy runs against the property and does not depend on the general contractor’s solvency. Then evaluate a personal liability notice to the owner, bearing in mind that the owner’s exposure is limited to what remains owed to the general contractor. Where a payment bond exists, a bond claim may also be available, and where the contractor is failing financially, speed matters more than usual.
Can I put a lien on a public school or city project in Indiana?
No. Public property is not subject to mechanic’s liens in Indiana, and payment protection on public work comes from the required payment bond and the statutes governing that public authority. The claim deadlines are short and vary with whether the project belongs to the state, a city, a county, or a school corporation. Identify the governing statute and the bond deadline when the project starts rather than when payment fails.
How long do I have to sue a customer for unpaid construction work in Indiana?
Indiana maintains two limitation periods for written contracts and has not definitively settled which governs a construction contract, so treating the shorter period as the deadline is the safer assumption. Claims on unwritten contracts and accounts carry a shorter period than claims on written contracts. Mechanic’s lien and bond deadlines will require action long before any of those periods expire, which is why the lien calendar ordinarily drives the timing.
Protect the deadline, then talk about strategy.
Unpaid construction receivables become harder to collect every week, and the deadlines that give an Indiana contractor leverage are measured in days rather than months. Fugate Gangstad Lowe LLC represents contractors, subcontractors, suppliers, and owners across central Indiana in mechanic’s lien filings and foreclosures, bond claims, construction collections, and contract litigation in Marion, Hamilton, Boone, Hendricks, and surrounding counties. We will review your documents, identify the deadlines that are running, and tell you what the claim looks like from a litigation standpoint. Call our Indiana construction lawyers at 317-829-6797 or reach us through our contact form.
The information provided in this article is for general informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. For legal advice tailored to your situation, please contact our firm directly by calling 317-829-6797 or by filling out our contact form.