Can a company enforce a lien in Montana for unpaid balance due to incomplete repairs?

Question

My father signed a $25,000 partial bathroom renovation contract in Montana, USA, which included a mechanic's lien. After several issues, the company agreed to reduce the fee by $2,000. However, the fee addendum contract included terms that precluded reporting issues to the BBB and other entities, which he did not sign. He paid the reduced fee, but a plumbing issue followed, leading to a wall damage and further reluctance to pay. My father suggested completing repairs himself for another fee reduction, pending the owner's inspection, which hasn't occurred for three weeks. He documented concerns throughout the project. Without any signed agreement for fee reduction, a balance of $12,500 is due upon completion per the original contract. Can the company enforce a lien if my father never pays due to incomplete repairs?

James L. Arrasmith · Answer

In Montana, a company can file a mechanic’s lien if they believe they’ve provided labor or materials and haven’t been fully paid. However, to enforce that lien, they would need to prove they upheld their side of the contract. If your father has clear documentation showing that the work was incomplete, defective, or damaged his home, that can be powerful evidence to contest the lien or defend against any collection attempt. 
 
The fact that there was a proposed fee reduction and an agreement to inspect before final payment—especially if the inspection never happened—also works in your father's favor. If the final payment is due only after full completion, and the company failed to meet that condition, then your father may have a strong legal basis for withholding payment. The addendum they tried to include with restrictive terms was never signed, so it likely carries no legal weight. 
 
That said, the company can still try to enforce the lien, but whether it holds up in court depends on the facts and evidence. Your father should gather every document, photo, and written message related to the project, especially anything that shows the problems and delays. If it goes to court, those records will help show that the company didn’t fulfill its obligation. Taking action now—before anything escalates—will give him the best chance of protecting his rights.

Q: Can a company enforce a lien in Montana for unpaid balance due to incomplete repairs?