Lange Industries built a $510,000 grain elevator for Hallam Grain but left various defects. Hallam refused to pay the final $56,203 balance and filed counterclaims for the defects. The Nebraska Supreme Court ruled that Lange substantially performed the contract despite the defects, allowing Lange to foreclose its mechanic's lien and collect most of the owed money. The court reduced the payment by only $1,464 for one specific design flaw in the dump pit. This means contractors can still collect payment even when work isn't perfect, as long as the owner is using the facility.
Substantial performance doctrine protects your lien rights—minor defects don't eliminate your right to payment, only reduce it by the cost to fix them
Owner's continued use of the completed work (like operating the grain elevator) does not waive your right to collect or foreclose your lien