Inform the general contractor of the notice of lien

Have your attorney demand that the General Contractor remove the lien.

Owners should be aware that there is a public policy against enforcement of “pay when paid” clauses in contracts. These clauses generally provide that a subcontractor will be paid only as and when the general contractor is paid.

If the General contractor has failed to pay amounts owed to their subcontractor and the subcontractor has filed a mechanic’s lien, then  you as the owner may withhold payments to the general contractor and terminate the construction contract in certain cases.