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Washington
Washington Lien Basics
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Any person furnishing labor, professional services, materials, or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor, professional services, materials, or equipment furnished at the order of the owner, or the agent or construction agent of the owner.
An improvement is defined to include any constructing, remodeling, demolishing, clearing, grading, filling in, planting, planning, surveying, and the providing of professional services.Thus contractors, lower tiered subcontractors, design professionals, material and equipment suppliers (including transporters of materials), are all entitled to protection under Washington’s lien laws.
2. Notice Requirements:
Prior to the commencement of construction services, general contractors and specialty contractors who contract directly with the owner, must provide to the owner a Notice to Customer.This notice is designed to inform the owner of the contractor’s status and to briefly describe the contractor’s rights to enforce a lien upon the property.
Subcontractors, suppliers and professional service providers (those who do not contract directly with the owner) are required to provide the owner with a Notice to Owner,which is designed to inform the owner of all individuals and entities who are providing materials, services and equipment to the real estate. The notice may be given at any time, but only protects the right to claim a lien for professional services, materials, or equipment for a limited time prior to giving of the notice, depending on the type of construction.
In the case of commercial construction, or on a remodel, alteration or repair of an owner-occupied single family residence, the right to claim a lien is effective for materials, equipment and professional services during the preceding sixty (60) days prior to giving notice.
In the case of new construction of a single family residence, the right to claim a lien is effective for materials, equipment and professional services during the preceding ten (10) days prior to giving notice.
In the case of individuals or entities providing professional services, Washington provides a mechanism for providing notice to all that they have contributed services to the property and have lien rights thereupon. The Notice of Furnishing Professional Services may be recorded with the county auditor where the real estate is located. While the failure to record this notice does not necessarily foreclose the professional service provider’s ability to file a lien, it will lose its priority over a mortgager or purchaser, who in good faith acquired an interest in the real estate. This notice is not required if there has been a noticeable improvement to the property that is visible by inspection.
3. Deadline for filing a Lien:
A Claim of Lien must filed within ninety (90) days from the last day that the person and/or entity has ceased furnishing labor, professional services, material, or equipment.
4. Foreclosure Actions:
In order to enforce the Claim of Lien, the lien claimant must bring a civil action to foreclose on the lien within eight months from the date of filing for recording. The action is to be brought in the Superior Court of the county in which the property is located.An important note, failure to identify the true owner of the property will be fatal to the foreclosure action. Thus, it is important to obtain a title report to ensure that the necessary parties are identified. Another important reason for acquiring the title report is so that the claimant can identify all other parties who claim an interest in the property incurred in bringing the lien foreclosure action. These costs include monies paid for recording the Claim of Lien, the costs of the title report, bond costs, and attorney fees and necessary expenses incurred by the attorney in the Superior Court, Court of Appeals, Supreme Court, or arbitration. The decision to award these costs is discretionary.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien:
Anyone performing labor upon, or furnishing materials to be used in the construction of real property or improvement is granted the right to lien.The coverage is very broad. It includes any person or entity which furnishes materials to be used in any construction project to improve land, building, or other structures.
2. Notice Requirements:
No formal notice to owner is required for Idaho, however it is always a good idea to send a basic Notice to Owner letter, although not required, this will at least put the owner on notice that he could be subject to a lien if contractors are not paid.
3. Deadline for filing a Lien:
A Claim of Lien must be filed ninety (90) days (not 3 months) from the date the last labor and/or materials were furnished to the project.
4. Foreclosure Actions:
A lien foreclosure action must be filed six (6) months from the date the Claim of Lien was filed on the
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Construction liens are available to anyone performing services, including labor or furnishing materials, pursuant to a real estate improvement contract for the purpose of producing a change in the physical condition of the real estate.
2. Notice Requirements:
Claimants must give Notice of the Right to Claim a Lien to the contracting owner of the potential lien claimant’s right to claim a lien within either 20 days or 45 days after the date on which the potential lien claimant first furnishes services or materials to the project.
In addition to the Notice of the Right to Claim a Lien , the lien claimant also must serve each owner of record of the property being liened with a copy of the Construction Lien claim.
Montana law also allows an owner to file a Notice of Completion, and to publish that Notice of Completion, so as to start the running of the time frame for filing a Claim of Lien.
3. Lien Deadlines:
Not later than 90 days after the lien claimant’s final provision of materials or services for the project or the owner files a Notice of Completion.
4. Foreclosure Actions:
An action to foreclose upon a Claim of Lien must be initiated within two (2) years from the lien filing date.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Lien rights in North Dakota are available to persons who provide a broad range of services or materials for the improvement of real property
Suppliers of materials for use in an improvement may be entitled to a materialmen's lien on the land and improvement. A supplier of rental equipment to a construction project is entitled to a lien only if the rental contract is with the owner.
2. Notice Requirements:
A claimant must serve a written notice to the owner of his intentions to claim a lien at least fifteen (15) days prior to the filing of a Mechanic’s Lien demanding payment of the account.
Therequirements of the Notice to Owner of Intention to Claim a Lien are:
1. North Dakota requires that mandatory notice be sent to the owner, both before filing a Claim of Lien and before the filing of a lawsuit on a Mechanic’s Lien.
2. Before filing a Mechanic’s Lien, a verified Notice of Intention to Claim a Lien must be served upon the owner and filed with the Register of Deeds of the county where the property is located at least fifteen (15) days prior to filing the Mechanic's Lien.
3. Before filing an enforcement action (lawsuit) on a Mechanic's Lien, a lien holder must give written notice of his intention to file a lawsuit to enforce the Mechanic's Lien to the recordowner of the property. If the owner is served by personal service, the notice must be given at least ten (10) days before an action to enforce the lien is commenced. If personal service is not used, the owner can be notified by registered or certified mail, directed to the owner’s last known address, at least twenty (20) days before an action is commenced.
Note: In order to be entitled to a lien, a lien claimant, including subcontractors and suppliers, must keep an itemized account, separate and apart, from all other items of account. The minglingof charges for materials to be used in the construction, alternation, repair or improvement ofthe property of different persons, except for the cases of joint ownership or ownership incommon, defeats the right to a lien.
3. Lien Deadlines:
A claim of lien must be filed by a claimant within ninety (90) days after the last day that materials or services were provided in fulfillment of the claimant's contract in order to have maximum protection.
4. Foreclosure Actions:
An action (lawsuit) to enforce a Mechanic's Lien must be commenced within three (3) years after the date of recording of the verified Notice of Intention to Claim a Lien. If more than one (1) Notice of Intention is filed, a claimant should begin calculating the three (3) year period from the date of the first filing. However, this deadline can be substantially shortened if the owner, owner's agent or contractor serves a written demand on the lien holder. If written demand is issued in accordance with the statutes, the lien holder has thirty(30) days to commence lien foreclosure action.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien:
Minnesota law provides that whoever contributes to the improvement of real estate by performing labor, or furnishing skill, material or machinery, whether under contract with the owner of the real estate or at the instance of any agent, trustee, contractor or subcontractor of the owner, can impose a lien upon the improvement, and upon the land on which it is located or to which it may be removed.
Not everyone, however is entitle to assert a lien under the mechanic's lien law. Generally, suppliers to a contractor's inventory, or supplier to another supplier are not afforded the protection of a Mechanic's Lien. Suppliers who deliver to the job site or who specifically manufacture items for a particular job are however usually entitled to assert a mechanic’s lien against the improved property.
2. Notice Requirements: General contractors must provide a pre-lien notice in the written contract with the owner or, if no written contract, a General Contractor's Notice must be provided to the owner within 10 days after the work has been agreed upon. For Sub Contractors, and parties other than the general contractor, a Lien Claimant's Notice must be given within 45 days after the lien claimant’s first contribution of labor or material to the project.
The form for General Contractor's is called "General Contractors Notice", and the form for Sub Contractors is called "Lien Claimants Notice".
3. Deadline for filing a Lien:
A Mechanic’s Lien Statement must be filed within 120 days after the lien claimant’s last contribution of labor or material to the Job.
4. Foreclosure Actions:
A lien claimant must commence foreclosure of its lien within one year after the date of its last item of labor, skill or material as described in the recorded Mechanic's Lien Statement. In addition reasonable attorney’s fees may be awarded to a lien claimant as part of its foreclosurecosts.The amount of the award of attorney’s fees is determined at the discretion of the trial court. The amount must have a relation to the amount of the judgment secured. Factors that canbe considered in awarding attorney’s fees to a claimant are the time and effort required, ordifficulty of issues, skill and standing of attorney, value of interest, results secured at trial, loss ofopportunity for other employment, taxed party’s ability to pay, customary charges for similar
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Any party that performs, furnishes, or procures any work, labor, services, materials, plans or specifications used or consumed for the improvement of land is entitled to lien rights.
This includes any person who performs or furnishes labor for professional design, engineering, or surveying services so long as there has been visible commencement of construction.
2. Notice Requirements:
Wisconsin law requires prime contractors for smaller residential projects (4 family living units or less) to provide a notice of lien rights in their written contracts with owners. If the agreement between the prime contractor and the owner is an oral agreement, a written Prime Contractor Notice of Lien Rights must be served on the owner within ten (10) days of an oral agreement.
Wisconsin law does not require any notice or filing prior to the performance of the work by a subcontractor of any tier. However, subcontractors are required to serve a Subcontractor Identification Notice within sixty (60) days of the first date of supplying services or materials.
NOTE:If a Subcontractor Identification Notice is required and is served late (i.e., more than sixty (60) daysafter the first date labor or materials are furnished by a subcontractor), the subcontractor’s lien applies only to labor and materials provided after the notice is given.
Exceptions
A potential lien claimant (i.e., either a prime contractor or a subcontractor) does not have to give a notice of lien rights if one of the following apply:
(a) The lien claimant is any laborer or mechanic employed by any prime contractor or subcontractor.
(b) The lien claimant has contracted directly with the owner for the work or materials furnished, unless the claimant is a prime contractor subject to the statutory notice requirements.
(c) Where more than 4 family living units are to be provided or added and the improvement is wholly residential in character.
(d) Where the improvement is partly or wholly nonresidential in character.
(e) By any prime contractor who is personally an owner of the land to be improved.
(f) By any lien claimant who furnishes labor or materials for an improvement on a project on which the prime contractor is not required to give a notice of lien rights. Notwithstanding the exceptions above, it is still a good idea for prime contractors and subcontractors to give proper notice of lien rights, even though it might not be required.
NOTICE OF INTENTION TO FILE CLAIM FOR LIEN
All lien claimants must serve a Notice of Intention to File Claim for Lien on the owner of the land.(Prime Contractor Notice of Intention to File Claim for Lien) (Subcontractor Notice of Intention toFile Claim for Lien) The Notice can be served at any time after the materials or labor have beenfurnished and have contributed to the permanent improve of the land. However, since the Noticemust be served at least thirty (30) days before filing the Claim for Lien, the Notice will need to beserved within five (5) months from the date the lien claimant last furnished labor or materials.(Prime Contractor Claim for Lien) (Subcontractor Claim for Lien)Service Requirements: A Notice of Intention to File Claim for Lien must be served on owner at leastthirty (30) days (i.e., this means 30 days, not 1 month) before the filing of the Claim for Lien.TheNotice of Intention to File Claim for Lien must be in writing. It is recommended (but not required)that a copy be served on the lender. For subcontractors it is recommended (but not required) that acopy be sent to the prime contractor also.
3. Lien Deadlines:
Six (6) months after the last day that labor and/or materials are furnished for the project, but at least thirty (30) days after filing the Noticeof Intention to File Claim for Lien.
4. Foreclosure Actions:
Two (2) years after the filing of the Claim for Lien.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
According to Section 107 of the lien statute, Each contractor, subcontractor, supplier, or laborer who provides an improvement to real property shall be eligible to place a construction lien upon the interest of the owner or lessee who contracted for the improvement to the real property.
• Contractor is a person or business entity who, pursuant to a contract with the owner or lessee of real property, provides an improvement to real property.
• Subcontractor is a person or business entity, other than a laborer or supplier, who pursuant to a contract between himself or herself and a person other than the owner or lessee performs any part of a contractor's contract for an improvement.
• Supplier is a person or business entity who, pursuant to a contract with a contractor or a subcontractor, provides material or equipment which is used in the improvement of real property.
• Laborer means an individual who, pursuant to a contract with a contractor or subcontractor, provides an improvement to real property through the individual's personal labor.
Contractors or subcontractors who are required to be licensed under Michigan's Occupational Code, must be licensed at the time they enter into a contract. It is also important that the business entity, which enters into the contract, such as a corporation or limited liability company, also be licensed at the time of entering the contract, not just the individual.
2. Notice Requirements:
Within 20 days after furnishing the first labor or material, a subcontractor or supplier who contracts to provide an improvement to real property must serve a Notice of Furnishing to the Designee and General Contractor identified in the Notice of Commencement.
A Notice of Furnishing alerts the owner or lessee as to the identity of a subcontractor or supplier which may become a future lien claimant. Notice of Furnishing may be served either in person or by certified mail. No Notice of Furnishing is required if the contractor or supplier has a direct contract with the Owner or Lessee of the real property.
After serving a Notice of Furnishing, subcontractors and suppliers should complete a Proof of Service of Notice of Furnishing and keep copies of both forms together. A subcontractor or supplier’s failure to provide a Notice of Furnishing within the first 20 days of work will not defeat their right to a lien, but it may reduce the value of the lien. A subcontractor or supplier’s delay in providing a Notice of Furnishing will reduce the lien by the amount that the owner or lessee paid for the work prior to receipt of notice.
3. Deadline for filing a Lien:
A Claim of Lien must be recorded within ninety (90) days after the last date when labor or materials are furnished.This deadline is strictly enforced by the courts.
4. Foreclosure Actions:
Michigan law requires that an action to enforce a construction lien be commenced within one (1) year from the date the lien is recorded.If a foreclosure action is not commenced within one year, the lien expires. An owner or lessee who wishes to obtain a discharge of lien after one year must follow the administrative process set forth in the Construction Lien Act. This process is discussed below.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
The following persons are statutorily entitled to file liens:
1. Any person performing labor upon, transporting or furnishing any material to be used in, or renting equipment used in the construction of any improvement;
2. Any person who engages in or rents equipment for the preparation of a lot or parcel of land, or improves or rents equipment for the improvement of a street or road adjoining a lot or parcel of land;
3. Trustees of an employee benefit plan;
4. Architect, landscape architect, land surveyor or registered engineer who prepares plans, drawings or specifications that are intended for use in or to facilitate the construction of an improvement or who supervises the construction;
5. And landscape architect, land surveyor or other person who prepares plans, drawings, surveys or specifications that are used for the landscaping or preparation of a lot or parcel of land or who supervises the landscaping or preparation.
2. Notice Requirements:
Notice of Right to a Lien
All parties, except a supplier of labor, materials, equipment, rental or labor and equipment, whose contract is with the owner, is required to send a Notice of Right to a Lien. The Notice of Right to a Lien may be given at any time during the construction of the improvement. However, a claimant's right to perfect a claim of lien is limited to materials, equipment, services, and labor provided after a date that is eight days, not including Saturdays, Sundays and other holidays, before the notice is delivered or mailed.
Accordingly, in order to fully protect a material supplier, the Notice of Right to a Lien must be delivered no later than eight days after the first delivery of materials. In addition, in order for a notice to be effective, it must also be given “during the progress of the improvement.” To preserve a liens priority over a construction lender, a claimant must also give Notice of Right to a Lien to the lender. A lien priority over a construction lender is limited to the materials and equipment delivered within eight days prior to the delivery of the notice.
A supplier of labor, materials, equipment rental or labor and equipment whose contract is with an owner is not required to send a Notice of Right to a Lien to that owner.
However, a materials supplier whose contract is with the owner's construction agent must provide a Notice of Right to a Lien. On a residential project, anyone without a direct contract with the owner must give Notice of Right to a Lien.
Information Notice to Owner
All original contractors are required to give an Information Notice to Owner About Construction Liens for contracts for residential construction or improvements when the contract value is in excess of $1,000. In addition, an Information Notice to Owner About Construction Liens must be provided to the first purchaser of residential property constructed by the contractor and sold before or within the 75-day period immediately following the completion of construction.However, notice need not be provided to an owner who is also a contractor registered with the Construction Contractors Board.
Notice of Filing a Claim of Lien
After a claimant files a Claim of Construction Lien, he or she must mail a written notice to the owner(s) and mortgagee(s) that a lien claim has been filed. The Notice Of Filing Claim Of Lien must be sent to the owner(s) and mortgagee(s) by certified or registered mail. It must be mailed within 20 days after the lien is filed, and a copy of the claim of lien must be attached.
Failure to provide a notice of filing a lien claim prevents a person from recovering costs, disbursements, or attorney fees that are otherwise allowable in a suit brought to foreclose the construction lien.
3. Lien Deadlines:
Not later than 75 days after the person has ceased to provide labor, rent equipment, or furnish materials, or 75 days after completion of construction, whichever is earlier.
4. Foreclosure Actions:
120 days after the Claim of Construction Lien is filed unless suit is brought in a proper court within that time to enforce the lien, or 120 days after the expiration of an extended payment agreement set forth in the claim of lien.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Any person who performs work or provides materials for the permanent change of any real property is a person who is eligible for protection under the Wyoming lien statutes. This includes materials that are delivered to the construction site even though the materials were never used, provided that
this non-use was unrelated to the materialman's fault or consent.The remedies provided by the lien statutes are not exclusive; for example, a direct contract action can be brought in addition to a lien action.
2. Notice Requirements:
NOTICE TO OWNER
Wyoming has recognized that homeowners who may act as their own general contractors or builders and risk paying twice for labor and materials.
Therefore, such owners are put on notice that they should request lien waivers from all persons supplying materials or services on their project.The special notice requirements apply if:
(a) the property is an existing single-family dwelling unit;
(b) the property is a residence constructed by the owner or under a contract entered into by the owner prior to its occupancy as his primary residence; or
(c) the property is a single-family, owner-occupied dwelling unit, including a residence constructed and sold for occupancy as a primary residence.
This notice requirement does not apply to a developer or builder of multiple residences. Within thirty (30) days of providing materials or services, the prime or subcontractor must give written notice, received by the owner or his agent.
Although it is wise for any contractor, subcontractor or materialman to provide the Notice to Owner, it should be noted that if any contractor or subcontractor provides the above notice, then the remaining contractors or subcontractors under the same contract are relieved of the notice requirement.The above notice applies to the contractual and legal obligations of the owner, including the initial purchase price or contract amount, plus any additions or change orders.
Notice of Right to Claim Lien
As a protection for prime contractors on larger projects, a subcontractor or materialman may be required to give the prime contractor Notice of Right to Claim Lien or risk waiver of that right. This Notice is required if the prime contractor’s contract is in excess of $50,000.00.
3. Lien Deadlines:
A "general" or "prime" contractor must file within one-hundred twenty (120) days, and all other persons (subcontractors and materialmen) must file within ninety (90) days after the last day work was performed or materials furnished, or from the date the work was substantially completed or substantial completion of the contract to furnish materials occurs (whichever is earlier); and with respect to an employee or subcontractor, after the last day he performed work at the direction of his employer or contractor.
4. Foreclosure Actions:
An action to foreclose on a lien must be filed within one-hundred eighty (180) days after the Lien Statement has been filed.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Any party that furnishes skill, labor, services, including light, power, water, equipment, or materials for the improvement, development, or operation of property, is entitled to lien rights.
2. Notice Requirements:
South Dakota law does not require any notice or filing prior to the performance of the work by the prime contractor or subcontractor. However, South Dakota statutes do provide a mechanism for prime contractors to file a Notice of Project Commencement, which, if properly filed, protects them from liens filed, via subrogation, by sub-subcontractors and suppliers. If a Notice of Project Commencement is filed, the a sub-contractor must send a Notice of Furnishing Labor or Materials.
No sub-subcontractor or supplier to a subcontractor is entitled to extend a lien on a project on which the prime contractor has filed a Notice of Project Commencement unless the sub-subcontractor/ supplier has first provided a Notice of Furnishing Labor or Materials by certified or registered mail to the contractor identified in the Notice of Project Commencement and has provided a copy of the notice to the owner of record. Notice may not be made later than 60 days after doing the last of such work or furnishing the last item of such skill, services, material, or machinery, and the post office receipt for mailing such notice shall be attached to the lien and filed in the office of Register of Deeds.
3. Lien Deadlines:
One Hundred Twenty (120) consecutive calendar days (not four months) after the last day that labor and/or materials are furnished. However, the last day does not typically include replacement items, periodic testing or service calls.
4. Foreclosure Actions:
The holder of the lien must file suit to initiate a lien foreclosure action within six years after the date of the last item of his claim as set forth in the filed and entered lien statement. However, if the owner of the property makes written demand upon a lien holder to commence a suit to enforce a lien, the lien holder must commence such suit within thirty days or the lien is forfeited.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Parties entitled to a Mechanic’s Lien under Chapter 572 are: Any person or entity who furnishes any material or labor for, any building or land for improvement, alteration, or repair, by virtue of any contract with the owner, the owner’s agent, trustee, contractor or subcontractor
A party providing rental materials for such purposes is entitled to a lien. The lien is for the reasonable rental value during the period of actual use and any reasonable periods of nonuse.
For a public improvement construction project, the parties entitled to assert a lien claim under Chapter 573 are only those having contracts directly with a principal contractor or subcontractor to perform labor, or furnish material, or labor.A supplier commonly referred to as a “lower tier subcontractor” in the construction industry may only assert a claim against the retention fund or the bond if its contract is directly with a “subcontractor.”
The term “subcontractor” means a supplier of labor or materials to a subcontractor having a direct contract with the principal contractor, which would include, in the case of a project utilizing multiple prime contracts, a direct contract with one of the prime contractors.However, a supplier of materials only, to a subcontractor who is only furnishing materials is not entitled to a claim against either the retainage or the bond.
2. Notice Requirements:
Under Chapter 572, a supplier of labor or materials to a subcontractor on a private project must provide notice of its involvement to the principal contractor (Notice By Supplier of Labor or Materials to a Subcontractor), except where the improvement is a single-family or duplex residential property. Where such Notice is required, the supplier’s lien claim must be supported by a certified statement that the Notice was timely given. (Certification of Notification)
For an owner-occupied residence, a principal contractor under written contract to the Owner must include a notice of the fact parties may be entitled to assert a lien, in the contract. (Language to Be Included in Written Contract with Residential Owner) If the principal contractor has no written contract, he must provide written notice to the owner of all subcontractors he intends to use, within 10 days of commencing work, and update the Notice as necessary. (Notice By Principal Contractor on Residential Property of Intended Subcontractors) To protect its right to a lien against the unpaid balance due the principal contractor, a subcontractor on a residential property must serve written notice of its claim on the Owner. (Notice By Subcontractor to Residence Owner) A subcontractor must provide notice to the owner when it files its Mechanic’s Lien claim after the prescribed ninety (90) days.
On a public improvement project, a supplier of materials to a subcontractor is required to provide the principal contractor with notice of its involvement either through a written notice (Notification By Supplier) or through itemized invoices rendered to the contractor during the progress of the work. The supplier’s lien claim must then include a certification that the required notice was timely given. (Certification of Notification)
3. Deadline for filing a Lien:
A Mechanic’s Lien on private projects must be filed within ninety (90) days from the date on which the last material was furnished or the last labor was performed.
For a public improvement, Chapter 573 requires the claim to be filed at any time before the expiration of thirty (30) days following completion and final acceptance.
4. Foreclosure Actions:
A suit must be filed within two (2) years from expiration of the ninety (90) days for filing of the claim, in the case of a private project.
For public projects, the suit must be filed in the period between thirty (30) and sixty (60) days following completion and final acceptance of the improvement under Chapter 573.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien:
Original contractors or any person who contracts directly with the owner or the owner’s agent. (An original contractor can claim a lien only on the real property.)
Subcontractors, or persons who are not in direct contract with the owner or the owner's agent. Note that only a subcontractor, not an original contractor, can claim a lien on both the improved real property of the owner and on the funds due the original contractor.
Note, that although an entity may be known as a subcontractor for business purposes, that entity is an original contractor in the eyes of the law if the entity contracts directly with either the owner or the owner’s agent
2. Notice Requirements:
A subcontractor must give Subcontractor’s Notice of Intention to File Mechanic’s Lien. The subcontractor’s notice must be delivered within ninety (90) days of having last performed lienable services or providing lienable material on the property.
Subcontractor specific Pre-lien Requirements
The subcontractor’s pre-lien requirements are more extensive than the original contractor’s pre-lien requirements. In order for a subcontractor to assert a valid mechanic’s lien claim, the subcontractor must
(1) enter into a valid contract with an original contractor or a subcontractor;
(2) furnish lienable materials or services for the real property;
(3) perform the contract;
(4) establish a valid chain of contracts between the original contractor and the subcontractor (in other words, for a lower-tier subcontractor wishing to assert a claim, there must valid contracts from that lower-tier subcontractor to the original contractor);
(5) provide a 90-day notice of Subcontractor’s Notice of Intention to File Mechanic’s Lien;
(6) in the case of an owner-occupied single family residence, notify occupant within sixty (60) days from the date of first furnishing materials or labor. (Also, see form titled Subcontractor’s Claim for Lien).
3. Deadline for filing a Lien:
The time frame differs according to circumstances. To be effective as to all parties, the lien must be recorded within four (4) monthsof completion of the last lienable work for the project. “all parties” includes lenders as well as purchasers who purchase the real property within four (4) months of completion but before the claimant records a lien.
To be effective as to the interest of the original owner only, the lien must be recorded within two (2) yearsof completion of the last lienable work for the project. In the event the lien is recorded after four (4) months but before two (2) years and the owner sells the property, then the lien is unenforceable.
4. Foreclosure Actions:
A lawsuit must be filed within two (2) years of completion of the lienable work.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Those parties who are expressly within the scope of the mechanics’ lien remedy are described in the opening paragraph of Indiana Code §32-28-3-1 and include contractors, subcontractors, mechanics, lessors leasing construction and other equipment and tools, journeyman, laborers and all other persons performing labor or furnishing materials or machinery, including the leasing of equipment or tools used, for the erection, altering, repairing or removing a building or other structures.
A contractor, as the term is used in the mechanics’ lien statute, is a person who contracts to erect or construct a building, structure or other improvement.A contractor may assert a mechanics’ lien for work done or materials supplied by its unpaid subcontractors on a project.
A first-tier subcontractor has a direct contract with the general or prime contractor. A second-tier subcontractor [i.e., “sub-subcontractor”] contracts with a first-tier subcontractor. First-tier and second-tier subcontractors are protected by the mechanics’ lien statute, as is generally anyone who performs work on the project.
Suppliers of materials, however, are treated differently under the lien statute and are more narrowly protected. A material supplier furnishes materials and equipment for incorporation into the construction project and may contract with the owner, general or prime contractor, or a first or second-tier subcontractor. A material supplier who directly supplies the owner is authorized to perfect a mechanics’ lien against the project.So too, a supplier to the general or prime contractor has lien rights.Even a supplier to a subcontractor is afforded protection by the mechanic’s lien laws.However, a material supplier to a material supplier (e.g., a manufacturer who sells to a dealer/supplier) is considered to be too
remote and outside the scope of lien coverage.
Laborers also have the right to lien for wages and associated fringe benefits.
2. Notice Requirements:
Indiana law does not impose special requirements or limitations on lower tier lien claimants filing mechanics’ liens, except in the case of the pre-lien notice requirements noted above involving residential construction and remodeling involving intended owner-occupied family dwellings.
There are two different time limits for the pre-lien notice, depending on whether the work is for original construction or for alteration or repair work. These time limits are completely separate and distinct from the sixty (60) day time limit for filing a lien after the date of last labor performed or materials furnished on residential Type 1 projects. The pre-lien notice requirement for alteration orrepair work must be furnished within thirty (30)days from the date of first delivery or labor performed.The furnishing of the notice is a condition precedent to the right to subsequently record a lien upon the property. The same rule applies for original construction except that the notice must be given within sixty (60) daysfrom the date of the first delivery or labor performed.
However, on unoccupied residential and on public utilities projects, no-lien contracts remain available to the owner to protect its property against liens. No-lien contracts are prohibited on commercial and industrial projects.
3. Deadline for filing a Lien:
The time frame for filing a mechanics’ lien claim in Indiana depends on the type of project.
For residential projects, the deadline is sixty (60) days from the date of last work performed or materials furnished.
For public utilities and commercial and industrial projects, the deadline is ninety (90) days from the date of last work performed or materials furnished. See Time Limits For Filing Lien Claim.
4. Forclosure Actions:
(1) One year from the date of the recording of the lien notice, although that time can be shortened to as little as thirty (30) days if the owner sends a statutory thirty (30) day written notice to foreclose to the lien claimant. See Time Limits For Filing Lien Foreclosure.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Original Contractors, Subcontractors, and Construction Managers
The Ohio mechanics’ lien statutes provide almost identical definitions of the terms “original contractor” and “principal contractor.” Both terms refer to one who undertakes to construct, alter, erect, improve, repair, demolish, remove, dig or drill any part of a private or public improvement pursuant to a contract with the private or public owner of the improved property.1 Both refer to “persons” who are in direct privity of contract with the owner of the improvement. The only difference between the terms is that an original contractor undertakes its work pursuant to a contract with the owner of a privately funded improvement, while a principal contractor provides its work pursuant to a contract with the public authority sponsoring the public improvements.3
The term “subcontractor” has an identical meaning on both private and public improvements. It refers to a person who undertakes to provide the same type of work as an original or principal contractor, but does so pursuant to a contract with one other than the owner or public authority.4
The term “construction manager” is a person that is in privity of contract with the owner, part owner or lessee of the improved property who has substantial discretion and authority to manage or direct an improvement. Construction managers are considered to be “original contractors” for purposes of the private mechanics’ lien statutes.
Materialman
The Ohio mechanics’ lien and construction bond statutes provide lien and bond rights to materialmen. The Ohio Revised Code defines a “materialman” as one who provides “materials” in furtherance of an improvement. The lien statutes require that the materials be provided to an owner, original contractor, principal contractor or subcontractor. *Ohio Mechanic's Lien Statutes deny lien rights in connection with claims arising from the provision of materials to materialmen*.
2. Notice Requirements:
The Notice of Furnishing is a document, prescribed by statute and served by subcontractors and materialmen not in privity of contract with the owner. Further, if the subcontractor or materialmen is not privity of contract with the original contractor, they will also be required to serve the Notice of Furnishing on the original contractor. It is to be served early in the subcontractor’s or materialman’s involvement in the job. Service of this notice is usually a condition precedent to obtaining a valid mechanics’ lien.58 The Notice of Furnishing is intended to provide the owner and original contractor with the means to identify holders of potentially lienable claims early in the project so that those claims can be taken into account when construction funds are disbursed
Subcontractors and materialmen are required to prepare and serve a Notice of Furnishing for private projects or a Notice of Furnishing-Public on public projects
3. Deadline for filing a Lien:
Private project liens on a residential project must be filed with the County Recorder within 60 days following the day of the last labor and/or work provided by the lien claimant.
Liens on gas and oil wells are to be filed within 120 days.
All other liens on private projects are to be filed with 75 days.
Liens on non-federal public projects must be served on the public authority within 120 days and filed with the County Recorder within 30 days thereafter. Because these are liens against funds, unlike a lien on a private construction project that is a lien against the title to the improved property, filing the lien even within the 120-day period may not assure the lien claimant of a good lien as the public authority may have already disbursed the funds to the principal contractor leaving nothing to which the lien may attach. It is important for this reason, among others, to also perfect a bond claim against the principal’s payment bond, which is required to be posted for the benefit of the public authority and subcontractors and materialmen as defined in Chapter 1311 of the Ohio Revised Code.
Materialmen delivering materials to the project via common carrier must also be careful in the calculation of their lien date. Generally, a materialman may count their lien time from the date that the material was delivered to the project. Where the material is being delivered to the project via a common carrier, the lien date is calculated from the date the material is delivered to the common carrier, not when the common carrier delivers it to the project. The materialman may overcome this trap by delivering the materials to the project via its own truck.
Liens against the homeowner type of residential construction are subject to a restriction similar to that of the public project. While the lien is actually against the title to the improved property, it is limited to the amount still owed to the original contractor. The mechanic’s lien statutes provide the additional protection to the Homeowner of not having to pay twice for the same work, provided they do not make such payments after they receive service of the filed lien. Therefore, if the Homeowner has paid the contract price or more than is remaining due under the Affidavit for Lien before they receive the service of the Affidavit for Lien, their liability under the Lien will be limited to the remaining balance due under the contract.
4. Foreclosure Actions:
Mechanic’s Liens in Ohio have a life span of six years following the date that they were filed with the County Recorder. A foreclosure action enforcing the lien must be filed prior to the expiration of the six year period. This time period cannot be extended or renewed. The commencement of a foreclosure action by another party, naming the lien claimant as a party-in-interest, does not extend the time for the lien claimant to assert its claim, even if the lien claimant files its answer and cross claim within the time prescribed by the Civil Rules.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Updated 7/09
Who has Lien rights in California?
There are many criteria and procedures to be eligible to file a valid mechanic’s lien.
• A claimant must have made a direct contribution to a work of improvement. “Anyone directly involved in the actual creation of a work of improvement stands under the umbrella of the mechanic’s lien law, however indirect parties are not protected, thus, a materialman to a materialman is out in the rain.
• The work of improvement must be specifically identified. Just delivering material to a contractor to replenish its stock will not support a lien, even if used on a specific project, unless the material is designated for use on that particular project. A party who simply transports material to a jobsite cannot generally maintain lien rights for this service, but there are exceptions to this rule.
• The work must be a private work – public works projects cannot be lien'd.
• For a materialman, the material must also have actually been “used”, California law does not presume the material was used.– it must be proved by the materialman seeking relief.
• The lien claimant must have made the contribution at the request of the owner or the owner’s agent, including contractors and subcontractors. It is presumed that the owner ordered the work, unless the owner has posted and recorded a Notice of Non-Responsibility. “There is no explicit statutory definition of ‘owner.’ Thus, according to law, the owner is anyone with a property interest in the real property. This includes the fee owner, life tenant, lessee, or other misc. party involved with the property.
• The project must have actually begun. Work begins with “some work and labor on the ground, which is apparent and can easily be seen by everybody such as beginning to recognize the commencement of the construction of a building.” Mechanic’s liens relate back to when work commences on the whole project, even if the claimant’s own work is only a small and late element in the entire project.
• The claimant’s work must effect a permanent improvement to the property. For example, providing scaffolding or rental equipment qualifies. Landscaping qualifies, but maintaining landscaping does not.
• If a license is required for the work performed, a contractor or subcontractor must have the appropriate valid and active license in order to be afforded the lien remedy. But the sameis not true for a building permit, even though the work may be illegal without one. Thusthe lack of a building permit will not preclude a lien claimant from foreclosing on his lien.
• Liens are forfeited if they include claims for labor or materials not actually furnished.
• Even if no permanent structure is constructed, site improvements might qualify for a separate lien called a Site Improvers’ Lien.
What are the Notice Requirements to secure Lien Rights in California?
First Prerequisite: Serving the Preliminary 20-Day Notice (Private Work)
The Preliminary 20-Day Notice (Private Work) must be served by every lien claimant (except the “original contractor” or an actual laborer for wages) as a prerequisite to enforcing a mechanic’s lien. This protects owners from surprise claimants. No mechanic’s lien will be permitted for any work or materials furnished more than 20 days before serving this notice; although, in rare cases, an owner with actual knowledge may be stopped from asserting the statutory bar. The notice must contain a description of the work or materials to be furnished, an estimate of the price, the name and address of the person furnishing the work or materials, the identity of the person who contracted for the work or materials furnished, a description of the project site, and a “Notice to Property Owner” in specified language and boldface font. The owner may not waive this notice.
The notice statute provides that a supplier of labor or materials under subcontracts with more than one subcontractor on a project must serve a separate notice on each one. But, the notice made to an owner is good against successive owners, and one notice is all that is required for work under a single contract. While the notice must be given “not later than 20 days after furnishing labor, service, equipment or materials to the jobsite,” it may be given sooner, and good practice is to serve the notice immediately upon starting work, or even before, such as when an order is received or a contract is executed.
The Preliminary 20-Day Notice (Private Work) must be served on theowner, construction lender, if any, and original contractor. This must be done either by personal service, affidavit, or by certified or registered mail, proved by affidavit and either by return receipt or by Post Office records. The statute does not allow for delivery by private carrier, such as Federal Express, or even by ordinary first class mail. Although not required, the Preliminary 20-Day Notice may be filed with the County Recorder. By statute, the filing requires the Recorder to send the filer copies of notices of completion or cessation, which could affect the time to file an actual claim of lien.
Second Prerequisite: Recording the Claim of Lien
Before a California mechanic’s lien can be enforced, a Notice and Claim of Lien must be recorded. This is done in the Recorder’s Office in the county where the project is located.
If an owner records a Notice of Completion or Notice of Cessation with respect to the work of improvement, a general contractor must record his lien within 60 days thereafter. For others (meaning subcontractors, materialmen and laborers), the period is only 30days; provided, however, that the owner serves written notice of the recording of the Notice of Completion or Notice of Cessation within ten days of such recording on those claimants who served a Preliminary 20-Day Notice (Private Work). The purpose of these notices is to protect property owners by shortening the time period in which liens may be recorded against their property. When such notices are not recorded, all claimants have 90 days from “completion” of the entire project to record their lien. “Completion” of a project occurs when one of the following conditions is satisfied: (1) cessation of labor and/or occupation of the property by the owner or his agent; (2) acceptance of the project by the owner or his agent; or (3) cessation of work for 60 continuous days. Claimants may, of course, record their liens before “completion” of a project, as long as the claimant’s own work has been completed – there is no requirement that a claimant wait until the work as a whole is complete. An owner may record a Notice of Completion within 10 days of completion of a project. Alternatively, an owner may file a Notice of Cessation if the work on a project has stopped before completion, provided that there has been a “continuous cessation of labor for at least 30 days prior to such recording.” While the recording of either notice starts the shorter recording period mentioned above, an owner’s failure to record either of these notices does not affect the running of the longer recording period. It is, therefore, up to the claimant to inform himself of when the work has been “completed.” The Recorder is to provide claimants with notice of an owner’s recordation of a notice of completion when they file a Preliminary 20-Day Notice with the Recorder, but the Recorder cannot always be relied on to provide claimants with the requisite notice.
Third Prerequisite: Bringing An Action to Foreclose the Lien
The final step to enforcing a mechanic’s lien is the initiation of a foreclosure action by filing a Complaint to Foreclose Mechanic’s Lien. The action must be commenced within 90 days of recording the Claim of Lien. Failure to do so is a bar to maintaining a foreclosure action on the recorded lien. The time to file a lien foreclosure action may, however, be extended (up to a total of one year from completion of the work of improvement) if the claimant records a Notice of Credit.
How can a Preliminary Notice/20 Day Notice protect you and your business?
Owner pays the General Contractor but the Contractor does not pay you. Filing a 20 day notice lets the owner know that you are working on the job and the owner will then secure a release from the General Contractor for each progress payment ensuring that you get paid…..timely.
Owner does not Pay the General Contractor who then cannot pay you. Filing a 20 day notice within the time allowed ensured your right to Lien the job securing your receivables. Should you not be paid by the Owner at that point, you may then foreclose on the Lien compelling the Owner to sell his interest in the property at a judicial sale to satisfy his debt to you.
Person who hires you claims to be the Owner but is actually a Leaseholder. Filing an NTO allows us to investigate who the true owner of the property is and notify them of your work on the property ensuring your lien rights and to make sure that the Leaseholder will pay your bill.
What information do I need to send a Preliminary Notice?
1.Your Customers Information (The person that hired you to do the job)
2.Accurate Project Information: WHERE did you furnish materials or labor to? THE ACTUAL JOB ADDRESS
3.Obtain any applicable bond information
The following are examples:
a.Federal Miller Act Bond
b.Public Works-Labor and Material Bond
c.Private Works-Labor and Material Payment Bond
d.Subdivision Improvement Bond
4.The amount that you were contracted for?
Recap of Deadlines:
2.20 Days: You only have 20 days from the first day you were on the property to furnish materials or labor. Copies of your Preliminary Notice are sent certified to:
a.The Owner of the property
b.General Contractor
c.Surety
If a Notice of Completion or Notice of Cessation is recorded than you than your deadline to File a Lien is shortened from 90 days to 60 days or 30 days.
60 Days: The Original Contractor must record the claim of lien (The mechanics Lien) after the Original Contractor completed his contract. You only have 90 daysfrom the last day you were on the property to File a Mechanics Lien.
30 Days: All other claimants must record the claim of lien after they have furnished labor materials, or equipment to the project and before days after the completion of the work is improved or 30 Days after the recordation of a notice of completion or notice of cessation.
If a Notice of Completion or Notice of Cessation has not been recorded than your deadline to File a Lien is increased to 90 days
File a Lawsuit within 90 Days from the date the Mechanics Lien is recorded. If notice of credit was filed, the deadline is extended up to a total of 1 year from completion of the project.
What is the procedure if I am working on a Public Job?
1.First you must send your 20 Day/Preliminary Notice
2.If you are not paid on a public job the second step is to send a Stop Notice. A STOP Notice is NOT RECORDED, it is sent by certified mail.
3.A stop notice is filed by suppliers or subcontractors who have previously filed a preliminary notice in a timely manner, to the holder of the funds (Public agency, owner, or lender)
It is a legal notice to request that the fund be withheld from the GC. Stop notices can be sent on public or private jobs. The stop notice is used on public works jobs in place of a lien, because public property cannot be liened. Any activity contractor, except the prime contractor, may serve a stop notice.
A stop notice is a “lien on funds.” It is a legal notice to the awarding authority or the holder of funds by a subcontractor (claimant to withhold from the prime contractor in order to satisfy claim for labor and materials furnished to the prime contractor. When a subcontractor
Stop notices must be verified by the owner.
Services we provide for the State of California:
1.20 Day/Preliminary Notice
2.Track Notice of Completion or Notice of Cessation
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
“Lien claimant” means any person who provides work, material or equipment with a value of $500 or more to be used in or for the construction, alteration or repair of any improvement, property or work of improvement. The term includes, without limitation, every artisan, builder, contractor, laborer, lessor or renter of equipment, materialman, miner, subcontractor or other person who provides work, material or equipment. Such parties are entitled to assert a Notice of Lien upon the property and buildings.
2. Notice Requirements:
NRS 108.245 requires that all persons who desire to claim a lien in accordance with the statutes must give a Notice of Right to Lien. Such notice may be given at any time after the first delivery of material or first performance of work, but the lien claimant only has the right to lien for work or services performed in the 31 days before the Notice of Right to Lien was given.
The Notice of Right to Lien must be delivered in person or by certified mail, and it must be delivered to the owner of the property. There are two statutory exceptions to the Notice of Right to Lien requirement.
First, prime contractors or other lien claimants who have a direct contract with the owner, either to perform work, sell material, or to rent equipment, do not have to send the notice.
Second, one who performs only labor need not send a notice. It is not clear whether the second exception is intended to apply to a labor contractor or whether this exception is intended to apply solely for the benefit of employees of contractors. The conservative and safe view, from a labor contractor's standpoint, is to give the Notice of Right to Lien.
NRS 108.246 requires the prime contractor to advise the owner of the subcontractors on the job and that the owner may receive Notice of Right to Lien. The statute also requires the prime contractor to deliver a copy of the “lien information” to each subcontractor.
3. Deadline for filing a Lien:
In order to claim a Notice of Lien upon the real property, the lien must be recorded with the county recorder of the county in which the property is located. The lien must be recorded within 90 days after the date on which the latest of the following occurs
1) the completion of the work of improvement;
2) the last delivery of materials or the furnishing of equipment by the lien claimant; or
3) the last performance of work by the lien claimant. The 90 day period is shortened to 40 days if a valid Notice of Completion is recorded. A copy of the lien must be served upon the owner of the property, by personal service, or other mandated procedure, within 30 days of recording. Where a work of improvement involves a multi-family or single family residence, including apartment buildings, the lien claimant, except for laborers, must serve a 15-day Notice of Intent to Lien before recording a Notice of Lien, either by personal service or by certified mail. Service of this residential notice extends the time for recording the Notice of Lien by 15 days.
4. Foreclosure Actions:
A lawsuit to foreclose the lien must be filed within six (6) months of the recording of the lien.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Any person who provides labor or materials that are actually incorporated into the real property as part of the construction, alteration, or improvement of any building, structure or improvement to any premises in any manner is entitled to a mechanic’s lien, unless they are exempt under the Lien Recovery Fund.
All persons performing any services used to improve any premises shall have a lien upon the property, except as the lien is barred by statute.
Original Contractors
Anyone that contracts directly with the owner to supply labor or materials for a construction project is considered an “original contractor”. Therefore, there may be one or more original contractors on a project, depending on the relationship each party has with the owner. The courts have the final say in determining whether a person is an original contractor and may decide contrary to what one would assume in a given factual setting.
Subcontractors
All persons furnishing work or materials on a construction project, except laborers, and who are not original contractors, are considered subcontractors. A subcontractor may be at any level or tier in the contract chain. That is, the subcontractor may work directly for an original contractor or there may be one or more subcontractors in between. Subcontractors are entitled to file mechanic’s liens on commercial and residential projects. However, on residential projects, subcontractors may be required to release their mechanic’s liens and pursue recovery against the Lien Recovery Fund.
In 1994, the Utah legislature passed a bill known as the Residence Lien Restriction and Lien Recovery Fund Act. if the project owner has done three things, a lien claimant cannot maintain a mechanic’s lien against the owner’s property.
The requirements are:
(1) the owner must have a written contract with the original contractor;
(2) the owner must assure that the original contractor is properly licensed;
(3) the owner must have paid everything due under the contract with the
original contractor. If the owner meets these requirements, a lien claimant must release its lien against the property and pursue recovery against the Lien Recovery Fund.
Material Suppliers
Material suppliers are entitled to place a lien upon property for which they have provided materials. Suppliers may be classified as original contractors or subcontractors depending upon whom they contract with. One very important factor for suppliers is whether their materials can be identified as being supplied to the particular project being liened as opposed to materials being sold on general open accounts for use on any number of unidentified projects.
Therefore, to be protected by the mechanic’s lien law, it is important that suppliers keep good sales, delivery, and billing records. Whenever possible, a supplier should identify the project for which the material is being sold, furnished, or delivered.
2. Notice Requirements:
Notice of Commencement
An original contractor is defined as one having a contract with the owner of the project. For the Preliminary Notice provisions to be in effect on a project a Notice of Commencement must be timely filed. Where a building permit has been issued on a construction project, the local government entity issuing the permit must file a Notice of Commencement with the State Construction Registry no later than 15 days after the building permit issuance.
Preliminary Notice of Lien
Except for a person who has a contract with an owner or owner-builder or a laborer compensated with wages, a Preliminary Notice is required from those potentially making mechanic’s lien claims on construction projects. If a Preliminary Notice is not given, a contractor waives its right to file a mechanic’s lien on the project. A Preliminary Notice must be filed with the State Construction Registry before a Notice of Lien may be recorded. Subcontractors and suppliers of all tiers must file a Preliminary Notice by the later of:
(1) no later than 20 days after their first furnishing labor, equipment, or material to a project or
(2) no later than 20 days after the filing of the Notice of Commencement if the subcontractor’s work commences before the Notice of Commencement was filed.
3. Deadline for filing a Lien:
A lien claimant must file a Notice of Lien no later than 90 days after the date on which a Notice of Completion is filed or no later than 180 days after the date of final completion of the original contract if no Notice of Completion is filed. In any event, a Notice of Lien cannot be filed later than 180 days after the date of final completion of the original contract.
4. Foreclosure Actions:
A lien claimant must file an action to enforce the lien within 180 days from the day on which the lien claimant filed a Notice of Lien.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Parties entitled to claim a lien are defined in the statute as "Every person who furnishes or supplies laborers, machinery, tools, or equipment, and mechanics, materialmen, contractors, subcontractors, builders, and all persons of every class performing labor upon or furnishing directly to the owner or persons furnishing labor, laborers, or materials to be used in construction, alteration, improvement, addition to, or repair, either in whole or in part of any building.
2. Notice Requirements:
In C.R.S. 38-22-102(4), the Colorado statutes allows parties protected by Colorado mechanic's lien law (except the principal contractor) to file a notice (Notice to Owner) that places a duty upon the person who contracted with the principal contractor to insure that payment has been made to the noticing party or to withhold sufficient funds to satisfy the amount set out in the notice and any lien that may be filed as a result of nonpayment.
A Notice to Owner, when properly used, is a powerful tool to insure payment. However, the notice afforded by 38-22-102 is seldom used, perhaps because subcontractors and suppliers fear that placing an owner or other party on notice prior to a "problem" arising might, in some way, alienate them. Parties should carefully weigh the valuable benefits arising from the notice before casually dismissing its use.
3. Lien Deadlines:
Laborers who perform work by the day or piece and do not furnish any materials, must file a Statement of Lien no later than two months after the improvement is completed.
For everyone else (including general contractors, subcontractors, suppliers and personnel companies furnishing laborers) a Statement of Lien must be filed no later than four months after last performing work, labor or furnishing materials. The four month deadline is based on each claimant’s furnishing of labor/materials and not completion of the project.
*Special Rules for One and Two Family Homes*
A subcontractor or materialman performing work or furnishing materials on a one or two family home may have less time than the usual four (4) months to file a Statement of Lien. The reduction of time to file, from the normal four (4) months to two (2) months after completion of the improvement, applies in the case of a purchaser of the dwelling.Basically if there is a purchaser (or could be a purchaser) of the home, the Statement of Lien should be filed within two (2) months. If the residence is not sold within the four (4) month period after completion, then, a claimant has the normal four (4) months to file. However,caution and prudent practice dictates that a lien on a one or two family dwelling be filed within two (2) months.
4. Foreclosure Actions:
A suit must be filed no later than six months from the last day that the last materials are furnished or the last work is performed or laborers are furnished or the improvement is completed, whichever is later.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Prime contractors, subcontractors and materialmen to prime contractors (first tier subcontractors), and materialmen or suppliers of subcontractors (second tier materialmen).Persons with more remote claims cannot obtain any lien rights under Nebraska Lien Law.
2. Notice Requirements:
3. Deadline for filing a Lien:
Anytime after contract execution until 120 consecutive calendar days from the last date that services or labor were provided.
Real Estate to Which the Lien Will Attach
There are two primary methods of determining the real estate that is subject to a construction lien, depending upon whether or not a Notice of Commencement has been recorded prior to recording of the Construction Lien.
a. If no applicable Notice of Commencement is recorded at the time the Construction Lien is recorded, the lien is on the contracting owner’s real estate being improved or directly benefited.
b. If, at the time a Construction Lien is recorded, there is a Notice of Commencement recorded covering the improvement pursuant to which the lien arises, the lien is on the contracting owner’s real estate described in the Notice of Commencement.
4. Foreclosure Actions:
A foreclosure action must be executed within (2) Two years from the date the lien was recorded.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien:
Contractors, Sub-Contractors, Materials Suppliers, however according to Kansas Law the following do not have Lien rights. A subcontractor of a subcontractor, and a supplier of a supplier are not entitled to a mechanic's lien under Kansas Law. Suppliers of equipment and materials to contractors and subcontractors come within the scope of protection afforded by both mechanic's liens and public works bonds.
2. Notice Requirements:
No notice is required for commercial projects. However a Warning Statement must be given to the property owner if a subcontractor wishes to claim a lien on pre-existing residential property. K.S.A. 60-1103a. On new residential property, the contractor must file a Notice of Intent to Perform at the commencement of the job.
3. Deadline for filing a Lien:
General Contractors have four months after the date of the last material, equipment, or supplies were furnished or the last labor was performed under the contract in order to file its mechanic's lien. K.S.A. 60-1102.
A subcontractor, supplier, or other person has three months after the date the last supplies, materials, equipment or labor was furnished. K.S.A. 60-1103. The test to determine when specifically work is completed (thus, beginning the time running for filing a mechanic's lien) is whether the work is part of the work necessary to be performed under the terms of the original contract to complete the job.Any delay in finishing work necessary and required under the contract must comply in good faith with the requirements of the contract.
4. Foreclosure Actions:
A legal action to foreclose on a mechanic's lien under K.S.A. 60-1105(a) must be brought within one year from the time of filing the lien statement. However, if a promissory note is attached to the lien in lieu of an itemized statement, the action may be commenced within one year from the maturity of the note.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien:
Any party that furnishes labor, materials and/or equipment directly for use in the improvement of real property, is entitled to lien rights.
In the case of residential property however, any improvement, repair or remodeling of owner-occupied residential property of four units orless, only the original contractor, is entitled to impose a lien against the owner'sproperty unless the owner signs a consent agreeing that a lien may be levied against the property if non-payment occurs.
Such consent must also be attached to any lien statement. The original contractor must furnish the notice to the owner if requested by the subcontractor/supplier, but the prime contractor has no obligation
to obtain the owner's consent.
2. Notice Requirements:
Missouri law requires the prime contractor to give notice to the owner prior to the first delivery ofmaterial or the execution of the contract. For best results, notice to the owner at the execution of the contract, is the best practice, before the work even begins.
Subcontractors intending to perform work or supply material on a residential unit who wish to preserve their lien rights must require the general contractor obtain the written consent of the owner to a possible lien, prior to the start of work. If the job involves the rental of machinery and/or equipment, the claimant must give notice to the owner within five (5) days of furnishing equipment or machinery.
Prior to filing of a Lien Statement, Any person, except the original contractor, must give ten days notice to the owner, owners or agent before filing a lien, by serving a Notice of Intent to File Mechanic’s Lien Statement.
3. Deadline for filing a Lien:
A potential Lien Claimant must file a Lien statement with the clerks office of the county in which the subject property is located within (6) six months of the last day that labor and/or materials are furnished for the project. For liens involving rental machinery and equipment suppliers, the lien must be filed within (60) Sixtydays from when the supplier removes the last piece of equipment or machinery from the property.
4. Forclosure Actions:
A Lien claimant must initiate a foreclosure action within six months after the date the lien statement was filed.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien:
Any party that furnishes labor, materials and/or equipment directly for use in the improvement of real property, is entitled to lien rights. This also includes the value of equipment rented for use in the construction of improvements. North Carolina General Statute 44A-8 also provides that any party who performs or furnishes labor or services for professional design, engineering, or land surveying shall be entitled to a lien on the real property to secure payment for those professional services.
2. Notice Requirements/Deadline for Filing Lien statement.
Kentucky law does not require any notice or filing prior to the performance of the work by the Prime Contractor or a first, second or third tier Subcontractor. However Kentucky does require that a "Notice of Intent to Lien" be sent prior to filing of a Lien Statement. The timelines are listed below.
Residential Projects - Owner Occupied Single Or Double Family Dwelling:
Notice is required no later than seventy-five (75) days from the last item of material furnished or work performed on an owner-occupied single or double family dwelling.
All Other Private Projects:
For claims equal to or less than $1,000, notice must be provided no later than seventy-five(75) days from the date the last item of material was furnished or work was performed.
For claims greater than $1,000, notice must be provided no later than one hundred twenty (120) days from the last date the last item of material was furnished or work was performed.
3. Last Day on Job
The last day that labor or materials are furnished that are necessary to fulfill the requirements of the contract is deemed as the last day of work, which begins the start of the lien-filing period. Punch list work has been found to be included in contract work, but it is better practice to file notices and liens based on materials furnished and labor performed on actual work rather than repairs. Minor or trivial repairs notdone in good faith, and/or not necessary in the performance of the contract, does not prolong the time for giving notice.Labor and/or materials for warranty obligations are not considered for purposes of establishing the last day of work.
4. Construction project participants not protected by the lien law
Kentucky lien law provides protection to parties that have contracts with the owner, Prime Contractor, Subcontractor, remote Subcontractor, architect or the owner’s authorized agent.Kentucky lien law does not provide protection to a materialman who provides materials to another materialman on the project.
5. Costs or damages are typically not allowed in a lien claim
Kentucky law allows broad protection to parties that supply materials, services and/or labor including professionals. Items that are typically not allowed in a lien claim are attorneys’ fees, lost profits, indirect and consequential damages.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien:
Any “person” or "Entity" who provides labor or furnishes professional services, materials, machinery, fixtures, or tools in the construction, alteration, or repair of any building, or other structure or improvement, is entitled to a lien on such building, structure or improvement for the work or labor done or professional services, material, machinery, fixtures or tools furnished. However, Suppliers to suppliers are not entitled to a mechanic’s lien in Arizona. Design professionals are also included in the class of persons protected by Arizona’s mechanic lien laws; however, to qualify for lien rights, the design professional must have a written agreement with the property owner or a written or oral contract with the architect having a written agreement with the owner.
An important note to keep in mind is that Anticipated profits for unperformed work are not lienable by any lien claimant. Those who have no contract with the owner are entitled to a lien only for the “reasonable value” of the labor and material furnished, not necessarily for the contract price.
2. Notice Requirements:
Arizona law requires the service of a “Preliminary Twenty Day Lien Notice” within 20 days after the commencement of work or the delivery of materials.
3. Deadline for filing a Lien:
If a “Notice of Completion” has been recorded, a mechanic’s lien must be recorded with the County Recorder for the county in which the property is located within 60 days, Otherwise mechanic’s liens must be recorded within 120 days after “completion” of the project.
4. Foreclosure Actions:
The deadline for filing suit for foreclosure of a mechanic’s lien is six (6) months after the date of recordation of the lien document.
5. Property Subject to Lien:
As a general rule, all property is subject to Arizona’s mechanic’s lien laws. There are, however, some exceptions. All public works are exempt from mechanic’s liens. In addition, private construction for which a payment bond has been recorded consistent with various statutory requirements may not be liened.
As for residential property, a claimant has no lien rights against the dwelling of an “owner-occupant” unless the claimant has executed a written contract directly with the owner-occupant. For the purpose of this statute, “dwelling” means property designed for either single one-family or single two-family residential purposes, including an apartment or a horizontal property regime or other condominium. An “owner-occupant” means a person who intends to reside in the dwelling at least thirty (30) days during the twelve (12) month period immediately following completion of the residence and who does not intend to sell or lease the property to others.
As for tenant improvements, liens are available only for the leasehold interest, not for the owner’s fee interest, unless the lessee is required by the terms of the lease to make improvements to the leasehold, in which event the lessee is deemed to be the agent of the owner.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Every person performing labor upon, providing or hauling equipment, tools or machinery for or furnishing materials to be used in the construction, alteration or repair of any real property, may claim lien upon the property for the work or labor done. Contractors, and Subcontractors performing construction services have the right to file liens. A subcontractor does not have to do its work at the construction site. To be a subcontractor, one must perform some part of the work for which the owner contracted. The fabrication must be unique or specifically for the project. The performance must be substantial, Minuscule amounts of labor on what is mostly just material is not sufficient to be classified as a subcontractor rather than a supplier.
Persons who are required to have a construction license issued by the New Mexico Construction Industry Licensing Commission and who do not possess such a license are not entitled to protection of the lien law.
Note: Suppliers to suppliers are not afforded protection of the lien law.
2. Notice Requirements:
New Mexico requires a Preliminary Notice for those persons not contracting directly with an original contractor on non-residential construction if the amount of the lien will be $5,000.00 or greater.
The Preliminary Notice must be provided within 60 days of first providing services or materials. If provided later than 60 days, the notice relates back only to services and materials that were provided in the previous 30 days.
Preliminary notices are not required for first tier subcontractors or first-tier suppliers, nor are they required on residential construction.
3. Deadline for filing a Lien:
Original contractors have 120 consecutive calendar days after completion of their contract.
Sub Contractors, and Claimants other than original contractors have 90 consecutive calendar days after substantial completion of the project.
Dollar amount of Claim
The dollar amount of the lien is that amount that was agreed upon or was set forth in the original contract.That amount, with all proper offsets and credits, is what is used in the Claim of Lien.
Interest, costs and attorneys' fees can also claimed. Overstatement of this amount will not invalidate the lien, provided there is no fraud or bad faith.
4. Foreclosure Actions:
A foreclosure suit must be commenced within (2)two years of the date of filing of the Claim of Lien.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
Texas Lien Basics
Last Update 7/09
1. Parties Entitled to Lien:
In Texas, (3) three general categories of persons may be entitled to a lien: suppliers of labor or material, contractors, subcontractors, and suppliers), persons specially fabricating materials, and certain design professionals.
Suppliers of Labor or Materials
Original contractors, subcontractors, and suppliers all have a right to file a lien. By statute, persons who supply labor or materials for the construction or repair of houses, buildings, improvements, levees and embankments along a river or creek, or railroads, by virtue of a contract with an owner, trustee, receiver, contractor or subcontractor, are generally entitled to a lien.The labor or material must be delivered to or used in the direct prosecution of the work.Although not specifically required by the Property Code, it appears that a contractor must substantially complete its contract to be entitled to a statutory lien, at least in those circumstances where the owner is not in default.
Specially Fabricated Materials
To justify the filing of a lien, a supplier's goods must be used in, or delivered to, the project.However, the Property Code provides an exception to this general rule for certain, special goods.Under section 53.0231(a) persons who specially fabricate materials that are unsuitable for use onother projects are entitled to a lien, even if the materials are not delivered or incorporated into thework.To protect itself from the risk of cancellation of an order before delivery, a specialtyfabricator must send a Notice of Specially Fabricated Items to the owner. In this way, if an order fora specialty item is canceled before it is delivered to the site, a fabricator can still perfect a lien, if a lienaffidavit is subsequently filed.
Design Professionals
Design professionals (i.e., architects, engineers or surveyors) who prepare a plan or plat in connection with the actual or proposed design, construction or repair of improvements or who prepare a survey of property lines are entitled to a lien on the real property to secure payment for their work.
2. Notice Requirements:
As mentioned above, mechanic’s liens in Texas will only apply to (i) those situations where the owner has received written notice of a debt and is holding money due to the original contractor or (ii) a claim against the owner’s statutory retainage amount. This first situation is referred to as “fund trapping.” Thus, prompt notice is vital to both comply with the statutory deadlines and to “trap” money in the owner’s possession. Likewise, an owner will only risk foreclosure of a mechanic’s lien if it fails to safeguard money after receiving a notice letter or fails to retain the statutory retainage. There are different requirements for fund-trapping notice letters for prime contractors, first tier subcontractors, and lower tier subcontractors, as explained below.
Prime Contractors
Prime Contractors are not required to send notice on work, The only obligation to create a lien is to file a timely Lien Affidavit.
First Tier Subcontractors
One type of notice letter is required, known as the “Third Month Notice.” or "Funds Trapping Notice". If the work of a subcontractor takes many months to complete, several of the letters might be sent. This must be followed by the Lien Affidavit. A First Tier Subcontractor's are those persons who are working under Contract with the "General or Prime Contractor". Third Month means the letter must be sent by the 15th day of the third month from the job start date, therefore it makes no difference if the job started on the first of the last day of the month, the letter still needs to be postmarked no later then the 15th 3 months later.
Lower Tier Subcontractors
Two types of notices are required, the “Second Month Notice” or "Preliminary Notice" to the original contractor and the “Third Month Notice” or "Funds Trapping Notice" to the owner and original contractor. Also, the Lien Affidavit must be filed. Lower Tier Subcontractors are those persons who are not in Contract with the property owner or Prime Contractor, but have a contract with another Subcontractor. Second Month means the letter must be sent by the 15th day of the second month from the job start date, therefore it makes no difference if the job started on the first of the last day of the month, the letter still needs to be postmarked no later than the 15th 2 months later.
Residential Projects
The same procedures exist for work on residential projects, but the deadlines are shortened by 1 month.
3. Lien Deadlines:
After proper written notice has been provided, the affidavit claiming a lien must be filed by the 15th day of the month, four months after the lien claimant completes its work. The deadline applicable to residential construction projects is one month earlier. However, claimants must be wary of the acceleration of this deadline at the completion or termination of the project. The lien deadline is shortened to three months on residential work.
4. Foreclosure Actions:
Suit must be brought by the later of two years from filing the lien affidavit or one year from completion of the entire construction project. Suits to foreclose liens on residences must be brought within one year of filing the lien affidavit.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Lien rights in Oklahoma are available to persons or entities who provide services or materials for the improvement of real property. Persons who provide services are entitled to a mechanic's lien, provided the labor was for the “construction, alteration or repair of an improvement". To be eligible to file a mechanic's lien, the services must be related to a specific project. A lien may be denied if the materials or services are provided as part of a running account rather than for the particular improvement at issue.
Suppliers of materials for use in project are entitled to a material man's lien on the land and improvements. To sustain the lien, the supplier must establish that the materials were supplied for the specific purpose of constructing the improvement based upon its knowledge of the contract between the owner and the contractor, and that the materials were used within the improvement.
Laborers, (People) who actually perform labor under a contract directly with the owner, are entitled to assert a lien on the product of their labor. Laborers' liens are limited, and are intended for the benefit of menial laborers, and are not available to persons who provide materials or labor through the work of others. The lien attaches as soon as the work commences, but only to the specific features improved by the labor, and continue only for so long as the improvement is owned by the contracting owner.
2. Notice Requirements:
Oklahoma's lien laws include notice requirements to protect property owners under two circumstances:
(1) where the property includes an owner-occupied dwelling.
(2) where the lien of a person other than an original contractor exceeds $2,500 on a non-residential project.
If a property is presently occupied as a dwelling by an owner, a lien arising under the mechanic's and materialman's provisions will not be enforceable unless, prior to the first time labor, services, materials or equipment are provided by the claimant, one of the owners is provided a Homeowner Notice, in writing, that includes the statutory notice language. If a subcontractor or materialman is supplied a copy of a Notice by the original contractor, it can rely on the copy of the Notice for the enforceability of its lien. If the original contractor neglects to issue the owner such Notice, the responsibility falls on the subcontractors and materialmen to protect their own lien rights by issuing their own Notice.
For projects other than those involving single family residences or multi-family residences of four or fewer dwelling units, any second tier contractor or supplier holding a lien claim of $2,500 or more must serve the original contractor and owner with a Pre-Lien Notice in order to perfect its lien. The Notice must be served before the subcontractor or supplier files its Lien Statement (Lower Tier), but no later than seventy-five (75) days after the date of supply of the materials, services, labor, or equipment.
3. Deadline for filing a Lien:
Original contractors have four (4) months from the last date services, materials or equipment were furnished in order to file a Lien Statement (Original Contractor) with the Clerk of the county where the property is located.
Subcontractors and Lower Tier entities, must file a Lien Statement within ninety (90) days of last furnishing services, materials or equipment.
4. Foreclosure Actions:
The deadline for starting foreclosure proceedings is One (1) year.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien:
Every contractor, subcontractor, or material supplier who supplies labor, services, material, fixtures, engines, boilers, or machinery for construction or repair may claim a lien.In addition, every architect, engineer, surveyor, appraiser, abstractor, title insurance agent, or person providing landscaping services or supplies who is under written contract with the owner or the owner's agent may claim a lien.
2. Notice Requirements:
In the case of residential property a Pre-Construction Notice to Owner must be sent to the property owner before the start of the project. Further, a smart subcontractor or material supplier should also provide a Pre-Construction Notice to Owner.
Arkansas has very specific notice and filing requirements depending on whether the project is residential or commercial. Lien claimants on commercial projects must provide Notice to Owner and Contractor within 75 days of the last work or material provided. Then, lien claimants must serve a Notice of Intent to File a Lien on the property owner 10 days before filing a lien.
3. Deadline for filing a Lien:
A Statement of Account and Claim of Lien must be filed with the circuit clerk of the county where the project is located within 120 days of last work,. “Last work” has been interpreted by case law to mean “last substantial work.”The filing must be verified by affidavit and accompanied by a copy of an Affidavit of Notice.
The original contractor for residential construction must give the owner notice (Pre-Construction Notice to Owner), which contains exactly the same wording and form as contained in Arkansas Code § 18-44-115(c) before supplying any material or fixtures on behalf of all potential lien claimants.
For commercial construction, a Notice to Owner and Contractor containing a description of the labor or material furnished, the amount due, the name and address of the person claiming the lien, the name and address of the person who has failed to pay the lien claimant, and a description of the job site must be furnished within 75 days of last furnishing labor and supplying material.
The notice must also include an exact copy of the Notice to Property Owner set out in Arkansas Code § 18-44- 115(e).Under a separate Arkansas statute, the Statement of Account and Claim of Lien must also contain the name of the person authorized to release the lien.
4. Forclosure Actions:
A lien may be enforced by having the building, erection, or improvement sold under execution. For residential or commercial construction, an action to foreclose the lien must be brought within 15 months of filing a lien. The petition to enforce a lien must allege the facts necessary for securing a lien and must contain a description of the property to be charged with the lien. All of the parties to the contract and all others interested in the controversy or property must be made parties to the suit.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
The Private Works Act sets out two separate, categories of persons who are entitled to lien claims.
The first category is those who have a privilege (lien) on the property to secure the obligations of the property owner arising out of work on the property.
The second category includes those persons who have a claim against the owner and a claim against the contractor to secure payment of amounts due as a result of work under the contract.Generally, however, claimants include those, with or without contractual privity with the owner, who perform work or provide services and/or materials on the project. These categories include the following;
a. Contractors, for the price of their work.
b. Subcontractors, for the price of their work.
c. Laborers or employees of the owner for the price of work performed at the site of the project.
d. Sellers of materials that are incorporated in the project or are consumed at the project (including fuel used in machinery).
e. Lessors, for the rent of movables used at the project site, if leased to the owner, the contractor, or the subcontractor by written lease.
f. Architects, engineers, and surveyors and their professional sub consultants, if employed by the owner, contractor, or a subcontractor.
2. Notice Requirements:
Privileges (liens) on the real property and claims against the owner of the project are released when the general contractor furnishes a proper payment bond and, before work begins, records a Notice of Contract with the payment bond attached.However, when a bond is issued by the contractor and the surety, failure to record either the Notice of Contract or the bond does not relieve the surety of its obligations under the bond.
The Private Works Act requires for payment bonds specific sums stated as fractions of the contract amount.A bond may be written for a greater amount than is required by the statute. In that event, the surety is liable for the full amount of the bond.If, however, the bond is for less than the statutory minimum, the owner waives his benefits, including protection against personal liability and liens and privileges.
Under the Private Works Act, a lien claimant may not sue the project surety until after expiration of the thirty (30) or sixty (60) day lien period, unless the claimant has delivered a copy of the proper Statement of Claim or Privilege to the surety at least thirty (30) days before filing suit. The surety's liability under the bond is extinguished with respect to claimants (other than the owner) who do not file suit against the owner, contractor, or surety within one year after the end of the thirty (30) or sixty (60) day lien period.
Public Works Projects
1) A lessor of equipment used at the job site must furnish a copy of a written lease to the owner not more than ten (10) days after the equipment is first placed at the job site.
2) Additionally, every person having a direct contractual relationship with a subcontractor, but not with the general contractor, must give notice of his claim to the contractor (Notice to Contractor-Public Project) accompanied by a Sworn Statement of Claim by Certified Mail within forty-five (45) days of the owner's recordation of notice of its acceptance of the work or of the contractor's default, in order to preserve his right to sue on the bond.
3) Suppliers to subcontractors forfeit their claims under the Public Works Act unless they send written Notice of Non-Payment to the general contractor and the owner, by Certified Mail, Return Receipt, no later than seventy-five (75) days after the last day of the month in which the materials were furnished "or no later than the statutory lien period whichever comes first.
3. Deadline for filing a Lien:
On private projects where a Notice of Contract was timely filed, a subcontractor's or supplier's Statement of Claim or Privilege (lien) must be filed within thirty (30) days after the filing of a Notice of Termination.
If, however, a Notice of Contract was not timely filed, the lien period is extended to sixty (60) days from filing of a Notice of Termination, or, if one is not filed, sixty (60) days from substantial completion or abandonment by the owner.
There are no liens against public property, but a claimant under the Public Works Act can file a sworn statement of its claim within forty-five (45) days of recordation of acceptance of the work or notice of default.
Special Rules for Material Suppliers:
(1) If a Notice of Contract is not recorded on a residential project, a supplier of movables must file his claim within seventy (70) days after the filing of a Notice of Termination of work. If a Notice of Termination is not filed, he must file his claim within seventy (70) days after substantial completion or abandonment of the work.
(2) Material suppliers who have no contract with the owner, but are in privity of contract with a contractor or a subcontractor, must give Notice of Non-Payment to the owner at least ten (10) days before filing a lien. This notice must be by Certified Mail, Return Receipt.
The notice must identify the material supplier and specify the materials supplied, the project, and a statement of the claimant's lien rights for the total amount owed, plus interest and recording fees.
4. Foreclosure Actions:
Under the Private Works Act, a suit to enforce a claim or privilege (lien) must be filed within one year after expiration of the period for recording liens. A suit filed on the anniversary of a timely recorded lien would be timely.
Under the Public Works Act, a claimant must bring suit against the surety or the contractor or both within one year from registry of acceptance of the work or notice of the default of the contractor.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
In Mississippi, a construction lien against the improved real estate shall exist only in favor of the person employed, or with whom the contract is made to perform such labor or furnish such materials or render such architectural service, and his assigns.In Mississippi Supreme Court decisions interpreting the statute establishing the lien right, it has been held that the contract does not have to be in writing.
2. Notice Requirements:
Mississippi law only requires notice when a party is requesting the benefit of a Stop Payment Notice. A Stop Payment Notice allows laborers, subcontractors, or material suppliers of any contractor who have not been paid for their labor, services or materials to "bind" sums due to the contractor in the owner's possession.
A subcontractor, laborer or materialman must give written notice to the owner of the amount due to him in order to claim the benefit of a Stop Payment Notice.
Normally, only those who have a direct contractual relationship with the owner, his agent, or his representative are afforded the protection of a lien, and, as such, the only protection afforded a lower tier subcontractor or supplier is the Stop Payment Notice.
3. Lien Deadlines:
A Claim Of Lien must be filed within twelve(12) months from the time when the money being claimed by the suit became due and payable.
4. Foreclosure Actions:
A person entitled to and desiring to have the benefit of a lien must commence his suit in the circuit court of the county where the property or some part thereof is situated within twelve (12) months after the time when the money being claimed by the suit became due and payable.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien:
Except for remote contractors on certain Residential projects, Tennessee laws provides any party who does the work or any part of the work on a private project, furnishes the materials or any part of the materials, or puts on the real property any fixture, machinery, or material with statutory lien right protection. An owner, or his agent, may prevent liens by remote contractors by supplying a payment bond, equal in amount to one hundred percent of the prime contractor’s contract price, in favor of such remote contractors prior to any work or labor being provided or materials, services, equipment, or machinery furnished in furtherance of the improvement. On owner occupied residential property, only prime contractors working on or supplying materials are entitled to lien rights (with one exception). Normally, remote contractors and laborers do not have certain lien rights on certain residential real property.
2. Notice Requirements:
Tennessee law requires a prime contractor (one dealing directly with the owner(s)) to give a Notice to Owner prior to commencing the improvement to the real property or the making of the contract. A contractor may also gain priority over a mortgagee when the contractor provides the mortgagee with written notice sent by certified or registered mail prior to the beginning of work or labor or the furnishing of materials, services, equipment or machinery and if the mortgagee either consents or does not object.
Although not required a Subcontractor may also send a Notice to Owner at the start of the project to maximize lien rights upon completion of the job.
3. Deadline for filing a Lien:
A Remote Contractor or Sub Contractor must properly give a Notice of Nonpayment within ninety (90) days of the last day of each month within which labor or work was provided or materials, services, equipment, or machinery were furnished before the filing of a Notice of Lien and Sworn Statement. After giving the Notice of Nonpayment, a remote contractor also must properly give to the owner and file with the register’s office a Notice of Lien and Sworn Statement within ninety (90) days after completion of the improvement.
A Prime Contractor to protect its rights against third parties, the prime contractor must properly file a Notice of Lien and Sworn Statement within ninety (90) days after completion of the improvement.
The Notice of Lien and Sworn Statement must be filed within ninety (90) days of the completion of the structure.
Prime contractors are required to institute a lawsuit to enforce the lien within one (1) year after the improvement is completed. The lien will remain valid until the final decree is entered in the litigation.
4. Foreclosure Actions:
A remote contractor must file suit within ninety (90) days of properly giving and filing the Notice of Lien and Sworn Statement. A contractor with a direct contract with the owner must file suit within one (1) year after the improvement is completed or abandoned.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien:
In order to be eligible to Lien a property in Alabama, the potential claimant must be in direct contract with the original contractor, or in direct contract with the property owner. Those parties not in one of these types of contracts are only entitled to an Unpaid Balance Lien, on funds due. Those claimants who fall into this category have no Lien rights on the Real Property of the owner.
Material Suppliers
A material supplier having a direct contract with the owner is considered to be an original contractor and has the same lien rights as a contractor. Conversely, a supplier who contracts with the contractor or a subcontractor rather than the owner is considered to be a “subcontractor” under the statute and is entitled to an “unpaid balance” lien.
A supplier who does not have a direct contract with the owner, however, may give notice to the owner before furnishing material and obtain a “full price” lien.An owner can avoid responsibility for a full price lien if it provides notice before the material is used that it will not be responsible for the price of the material. Should the owner fail to object to the supplier’s notice, there will be implied a contract to pay the supplier and such implied contract will support a “full price” lien.
Note that Alabama lien law does not extend the protection of a mechanic’s or materialman’s lien to a supplier of materials to another supplier.
2. Notice Requirements:
Generally, Alabama law does not require any notice or filing prior to the performance of work. However, those parties entitled to protection under the lien statutes must send a Notice to Owner (Prior to Performance of Work or Furnishing of Material), which significantly increases the rights of a potential lienor and the size of his encumbrance on the propertyin question.
3. Lien Deadlines:
Different time periods are prescribed by statute forfiling of the verified Statement of Lien depending on the status of the potential lienor as follows:
Laborers:
within thirty (30) days of the last labor provided on the project.
Original contractors:
within six (6) months after the maturity of the entire indebtednesssecured by the lien.
Sub-Contractors and All other claimants:
within four (4) months after the last item ofwork or material has been performed or furnished.
4. Foreclosure Actions:
Once Filed An action must be commenced "within six (6) months after the maturity of the entire indebtedness secured" by the lien, which means the point in time when the debt is contractually due and payable to the lienor.
5. Last Day on Job for adhering to prescribed guidelines:
The deadlines for Lien filings are based on the last day on the jobsite or materials supplied. This means the last day of substantial work. Returning to a jobsite for cleanup, repairs, misc finish work do not extend your deadlines.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
The following types of individuals and entities are entitled to lien rights in the State of Georgia.
(1) mechanics of every type
(2) contractors;
(3) subcontractors;
(4) materialman to contractors;
(5) materialman to subcontractors;
(6) laborers;
(7) registered architects furnishing plans, drawings, designs or other architectural services;
(8) registered land surveyors;
(9) registered professional engineers;
(10) contractors, subcontractors and materialman furnishing material to subcontractors;
(11) laborers furnishing labor for subcontractors for building factories, furnishing materials for factories, or furnishing machinery for factories;
(12) machinists and manufacturers of the machinery who may furnish, put up or repair any mill or machinery;
(13) contractors who build railroads; and
(14) suppliers furnishing rental tools, appliances, machinery or equipment.
Effective January 1, 2009, General Contractors, Sub-Contractors, and those required to have a license will be denied the right to seek payment for work performed, or to file a claim of lien if they do not have the required general contractor’s or residential contractor’s license.
2. Notice Requirements:
If a Notice of Commencement of Improvement has been properly filed and posted, subcontractors and suppliers who do not have a contract with the principal contractor are required to serve a written Notice to Contractor within 30 days from the filing of the Notice of Commencement of Improvement or within 30 days following the first delivery of labor, services or materials to the property by the lien claimant, whichever is later. Georgia law also imposes on suppliers an obligation to separate accounts for those materials furnished for each real property improvement.
3. Deadline for filing a Lien:
A properly constituted Claim of Lien must be filed within 90days (notthree months) after completion of work or the last furnishing of materials.
4. Foreclosure Actions:
Within 365 days of the date on which the claim of lien was filed, a claimant must file an action to foreclose on the lien. If the claimant did not furnish labor or materials directly to the property owner, as long as an action against the primary debtor on the underlying debt is filed within this 365-day period, a subsequent lien foreclosure action against the owner may be filed more than 365 days from the time the lien was filed.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
The following persons, firms or business entities have lien rights:
(a) Contractor
(b) Subcontractor
(c) Sub-subcontractor
(d) Laborer
(e) Materialman who contracts with the owner, a contractor, a subcontractor, or a sub-subcontractor. A party furnishing rental equipment is deemed a materialman.
(f) Professional lienors, defined as any person who performs services as an architect, landscape architect, interior designer, engineer, or surveyor and mapper. In order to comply with the notice requirements and other provisions of the Florida lien law statutes, a lienor must know its position within the contractual relationships between all of the parties involved in the project. Lien rights are granted to those who contract directly with the Owner, and also those within what may be considered as the four levels or links in the "chain of contracts" which tie together the various parties to a construction project. The attached Relationship Chain diagram illustrates the cutoff line between those with and those without lien rights. Also, it is important to note that no lien rights exist for any contractor, subcontractor or sub-subcontractor that is not properly licensed pursuant to the laws of the jurisdiction within which she or he is doing business. However, if a properly licensed lienor contracts with an unlicensed party, the lien rights of the properly licensed lienors are not adversely affected.
2. Notice Requirements:
Owners must record a Notice of Commencement and post a copy at the jobsite before the work starts except for professional services (e.g. survey, engineering or design services) or subdivision improvements defined as making the subdivision real property suitable as the site of an improvement. See, section 713.13, Florida Statutes. Owners are also required to record a copy of the payment bond, if any, with the Notice of Commencement. See, section 713.13(1)(e), Florida Statutes.
Lienors, except laborers, who do not have a direct contract with the owner must serve a Notice to Owner within 45 days of beginning to supply the first of their labor, services and/or materials or the date the owner makes the final payment, whichever comes first; but are encouraged to do so before beginning to supply labor, service or materials. See, section 713.06(2)(a), Florida Statutes.
3. Lien Deadlines:
All Lienors must record their Claim of Lien within 90 days of the last date they supplied labor, services or materials. See, section 713.08(5), Florida Statutes. The Claim of Lien must be served upon the owner within 15
days after recording.
4. Foreclosure Actions:
Unless an "interested party" takes measures to shorten the deadline, lienors are required to file suit within one year from the date that the lien is recorded. See, section 713.22(1), Florida Statutes.
However, this deadline may be shortened to:
(1) 60 days when an owner, its agent, or attorney serves a Notice of Contest of Lien pursuant to section 713.22(2), Florida Statutes; or,
(2) 20 days when any interested party serves a summons and complaint to show cause pursuant to section 713.21(4), Florida Statutes. Important: If the owner recorded a statutory payment bond with the Notice of Commencement, then the property may not be lienable. Instead, lienors must file suit against the bonding company and/or the principal named in the bond within one year of their last date of work.
Contractors in privity of contract with the owner of the structure and/or real property;
Subcontractors in privity of contract with the contractor;furnishers of materials, machinery or other equipment or supplies necessary to the completion of such building, structure or improvement to the owner,his contractoror his subcontractor;and to workmen, artisans, mechanics, laborers or providers of other services to the owner,his contractor or subcontractor.
Architects, surveyors, engineers and landscape architects are also provided protection by these statutes. Only those persons outlined in the statutory framework are afforded the protection of the lien provided.Beyond these three classes, the statute affords no protection.
2. Notice Requirements:
West Virginia law does not require any notice or filing prior to the performance of the work by a contractor, subcontractor, or materialman furnishing supplies to an owner; materialmen furnishing supplies to contractor or subcontractor; mechanic or laborer working for an owner; or a mechanic or laborer working for a contractor or subcontractor. The lien is created automatically. However, parties not in privity of contract with the owner may take advantage of an Optional Notice prior to performing work or providing materials. All parties should thoroughly understand their specific rights and obligations as set forth in the statutes in order to protect their lien rights. W.Va. Code 38-2-1 through 38-2-6.
3. Lien Deadlines:
For Parties Working Directly For an Owner:
Contractorsmust perfect and preserve their lien by recording a Notice of Mechanic's Lien within one hundred (100) days from completion of the contract, or last supplying materials or performing work on the project.
Materialmenfurnishing supplies to owner must perfect and preserve their lien by recording a Notice of Mechanic's Lien in the office of the County Commission within one hundred (100) days from the furnishing of the last of the materials, machinery or other supplies and equipment.
Mechanics or laborersworking for an owner must perfect and preserve their lien by recording a Notice of Mechanic's Lien in the office of the County Commission within one hundred (100) days from the date of the performing of the last work and labor.
For Parties Not Working Directly For an Owner:
Subcontractorsmust perfect and preserve their lien by serving the owner or its authorized agent within one hundred (100) days and recording it within onehundred (100) days from completion of the subcontract, or last supplying materials or performing work on the project. Refer to Notice of Mechanic's Lien-Subcontractor.
Materialmenfurnishing supplies to a contractor or subcontractor must perfect and preserve their lien by serving the owner or its authorized agent within one hundred (100) days and recording it within one hundred(100) days from the date of the furnishing of the last of the materials, machinery, or other equipment or supplies.
4. Foreclosure Actions:
A lien claim foreclosure action to enforce a mechanic’s lien authorized by W.Va. Law must be brought within six (6) months of recording the notice of lien in the Clerk’s office. W.Va. Code 38-2-34.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Any party furnishing work and/or materials may establish a lien. However, the party does not need to be in contract (have direct contractual relationship) with the owner, the general contractor or with any specific subcontractor or supplier.
This is very different for public buildings. Public projects limit eligible claimants to those in a specific tier of contractual relationships with the general contractor. In general, there should be a contract between the owner and the subcontractor, or person doing work for the general contractor. However, even if no contract between the subcontractor and the property owner, a lien may be claimed if the Owner had knowlege of the work or material being supplied, and was in agreement with this work, or did not dispute the work.
2. Notice Requirements:
The lien claimant must mail a Notice to Owner or Owner's Agent of Intention to Claim a Lien to the owner within one hundred twenty (120) days after claimant has performed the work or furnished the materials. It is important to remember that one hundred twenty days does not mean four calendar months – it means one hundred twenty days. The notice is timely if mailed within one hundred twenty days but even though it is not received by the owner until after one hundred twenty days. However, if there is not time to receive the return receipt card before the expiration of the 120 day notice period, it is advisable to have the notice hand-delivered, as the claimant must prove receipt of notice.
Notice by Posting
If notice cannot be delivered by certified or registered mail, or it cannot be personally delivered to the owner, the lien claimant or his agent may, in the presence of a competent witness, place the notice on the door or other front portion of the building within one hundred twenty (120) days. This is called “notice by posting,” and is appropriate in cases where the owner of the property has died and the successors in title do not appear on the public records of the county.
*Notice by posting is only permitted when service by certified or registered mail or by personal delivery cannot be made.
3. Deadline for filing a Lien:
A Mechanic’s Lien must be filed within one hundredeighty (180) after the work has been finished or the materials furnished. This means one hundred eighty (180) days, not six (6) calendar months.
4. Foreclosure Actions:
Once a lien has been established, a Petition to Enforce must be filed within one (1) year after the date on which the Petition to Establish a Mechanic's Lien was filed. In Maryland, it is possible to file a petition to establish and enforce the mechanic’s lien in the same pleading, entitled a “Petition to Establish and Enforce Mechanic’s Lien.”
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Prime contractors (those who contract directly with the owner), subcontractors (defined in the amended law as those who contract directly with a prime contractor and those who contract with a subcontractor in direct contractual privity with a prime contractor) are entitled to the lien.
A lien is not available to those below the level of a subcontractor. The statutory definition of subcontractor explicitly excludes architects and engineers, regardless of the type of services performed. Architects and engineers that contract directly with the owner are considered contractors entitled to liens only if they also provide additional services, such as supervision of construction, repairs or alterations on behalf of an owner, in addition to preparing drawings, specifications and contract documents. Architects or engineers who perform only design services or who contract with someone other than the owner are not entitled to the lien.
Public Projects and Bonds
Mechanics’ liens are not allowed for labor or materials furnished for a “purely public purpose.”Private projects are projects that are not public projects. Private projects are not subject to any statebond requirement.For public projects involving contracts with the Commonwealth of Pennsylvania or its agencies, theCommonwealth Procurement Coderequires performance security (performance bonds or othersecurity) in an amount equal to at least 50% of the contract price on construction contracts between$25,000 and $100,000and payment and performance bonds in the full amount of the contract forconstruction contracts over $100,000.Bonds are not required, but may be requested by thecontracting agency, for contracts under $25,000.The dollar thresholds of the foregoing contractamounts are to be adjusted annually.The Public Works Contractors’ Bond Law of 1967governs other public projects. It requirespayment and performance bonds in the full amount of the prime contract for any contract in excess
of $5,000.
2. Notice Requirements:
Pennsylvania law requires that subcontractors give the owner notice of intention to file a claim at least thirty (30) days prior to filing a claim of lien.
3. Deadline for filing a Lien:
Within six (6) months after the completion of the work of the claimant.
4. Foreclosure Actions:
Two (2) years from the date of the filing of the claim.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Anyone who performs labor or furnishes materials for the erection, repair or alteration of improvements on real estate is entitled to the protection of the lien law.Vermont law is silent as to whether design professionals are entitled to lien rights.
2. Notice Requirements:
A written Notice of Mechanic’s Lien must be provided to the owner or its agent by a contractor stating that it intends to assert a lien.As of July 1, 2004, the notice must include the date that payment is due, if known. Further, the Notice of Mechanic’s Lien must be filed with the town clerk within one hundred eighty (180) days from the date when payment became due for the last of labor performed or materials furnished on the project.
3. Lien Deadlines:
A Notice of Mechanic’s Lien must be filed with the clerk of the town in which the project is located no later than one hundred eighty (180) days from the date when payment became due for the last of the labor performed or materials furnished for the project.
4. Foreclosure Actions:
Within one hundred eighty (180) days of the filing of the Notice of Mechanic’s Lien, a civil action Complaint to enforce the lien and obtain payment must be filed.Also, a prejudgment Writ of Attachment of the real estate must be obtained during this same one hundred eighty (180) day period.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
A party that “performs labor or furnishes labor or material.”in the construction of a building, an appurtenance to a building, a wharf or a pier is entitled to the protection of Maine’s mechanic’s lien law. Equipment lessor/renters and providers of equipment repair parts are also protected.
2. Notice Requirements:
If the lienor does not have a contract with the property owner, the lienor must file a Notice of Lien within 90 days of the date of last work or materials supplied.
A copy of the notice of lien must be provided to the owner or owners by “ordinary mail.” A post office certificate of mailing to the owner is conclusive proof of receipt by the owner.
3. Lien Deadlines:
Maine mechanic’s lien statute requires all contractors, subcontractors and suppliers who do not have a contract with the property owner to file a Notice of Lien in the registry of deeds for the county in which the real estate is located within 90 days of the date of last labor, services or materials supplied to the project.
These requirements are not effective when there is a contract with the property owner. All lien claimants also must file a complaint in Maine District or Superior Court within 120 days of date of last work or materials supplied.
4. Foreclosure Actions:
The suit must be filed within 120 days of the date of last labor, services or materials supplied to the project. A certificate from the clerk of the court in which the action is pending should be filed in the registry of deeds within 60 days of the date on which the lien complaint was filed.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Any party furnishing labor, including construction management and general contractor services, subcontractor management and services, material or rental equipment, appliances, or tools, in the erection, alteration, repair or removal of a building or structure upon land or improving or alteration to real property is potentially eligible to perfect lien rights.
What constitutes an “improvement” under statute has been narrowly construed. “Something is not an improvement unless it is itself, in whole or in part, constructed or assembled in connection with a building or structure or other construction related project.
*Transporting goods, materials to a construction site, no matter how complicated a task that may be, does not constitute an improvement to real property*.
2. Notice Requirements:
Notice of Contract
A contractor having a written contract with the owner of any interest in real property or with the owner’s agent, for the whole or partial erection, alteration, repair or removal of a building, structure, or other improvement to real property, or for furnishing material or rental equipment, appliances, or tools, can create a lien upon such real property and improvements thereon by filing a Notice of Contract.
Notice of Subcontract
In order for a first, second or lower-tier subcontractor to benefit from the protection afforded under the lien law, the subcontractor must file or record a Notice of Subcontract in the registry of deeds for the county or registry district of the land court in which the property lies.
3. Deadline for filing a Lien:
A prime contractor must file a Notice of Contract, which creates a lien, within
(1) sixty days after the recording of a Notice of Substantial Completion (if one was filed) executed by the owner and general contractor;
(2) ninety days after the recording of a Notice of Termination (if the owner filed such a notice) executed by the project owner; or
(3) ninety days after the last labor and materials has been furnished by the general contractor or anyone claiming through the general contractor. Subcontractors must also file or record their Notice of Subcontract within the time periods outlined above.
The prime contractor and subcontractors must also file a Statement of Account within the earliest of
(1) ninety days after the filing of a Notice of Substantial Completion;
(2) one-hundred twenty days after the recording of a Notice of Termination; or
(3) one hundred-twenty days after the last labor or material was furnished. There are different notice requirements for subcontractors and personal laborers. Contractors without a written contract who performed personal labor in the erection, alteration, repair or removal of a building or structure upon land or improvement or alteration of real property are not required to file a notice but must file a Statement of Account within ninety days of the last day upon which work was performed.
4. Forclosure Actions:
The suit must be brought within ninety days of the filing of the Statement of Account.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Any party who furnishes work or provides materials with the proper consent may claim a lien. Privity of contract is not a requirement for the assertion of a mechanic’s lien.The Rhode Island mechanics' lien law does not distinguish between classes of potential lienors such as general contractors or subcontractors, but affords the remedies to all who perform work or provide materials with the consent of the owner, lessee, or tenant to improve his property.
2. Notice Requirements:
Rhode Island does not require any notice or filing prior to the performance of work. However, there are strict time limitations for filing a Notice of Intention to claim a lien (also known as a Notice of Intention to Do Work or Furnish Materials, or Both), and for filing a Complaint to Enforce Mechanic's Lien.
3. Lien Deadlines:
Anyone claiming a mechanic’s lien, with the exception of architects and engineers11 (see below), shall file a Notice of Intention to claim a lien in the following manner. Before or within two hundred (200) days after doing work or furnishing materials, a Notice of Intention to Do Work or Furnish Materials, or Both ("Notice of Intention") must be mailed by prepaid certified or registered mail, in either case return receipt requested, to the owner of record of the land at the time of the mailing (or lessee if claim is against lessee). Mailing should be made to the last known residence or place of business of the owner or lessee, or if no such address is known, to the address of the subject land.
Within two hundred (200) days after the performing of work or furnishing of materials, a copy of the Notice of Intention shall be filed in the land evidence records in the city or town where the land is located.
4. Foreclosure Actions:
In Rhode Island, suit is brought on a lien by filing a Complaint to Enforce Mechanic's Lien in the Superior Court of the county in which the work or materials were furnished.
The complaint to enforce must be filed within seven (7) days after filing a Notice of Lis Pendens. Both the Complaint to Enforce Mechanic's Lien and the Notice of Lis Pendens must be filed within forty (40) days of the date of recording the Notice of Intention.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien:
A person must pass a two-part test to file a valid mechanic’s lien.
1. the services rendered or materials furnished must have enhanced the property in some physical manner, and laid the groundwork for a physical enhancement of the property, or played an essential part in the physical improvement. This is known as the physical enhancement test.
2. the services rendered or materials furnished must be in the construction, raising, removal or repairs of any building or any of its appurtenances, or in the improvement of any lot or in the site development or subdivision of any plot of land.This also includes the value of rental equipment used in the construction. Landscaping services under a maintenance agreement do not pass the test.Furthermore, as stated above, attorney services, insurance services, and financial services do not pass the two-part test.
A second or lower tier subcontractor’s right to enforce a lien is based on the doctrine of subrogation. Therefore, a second or lower tier subcontractor is only entitled to recovery to the extent the original or general contractor is entitled to file and recover.
2. Notice Requirements:
Connecticut law does not require any notice or filing prior to the performance of the work by the original contractor, subcontractor or supplier. However, Connecticut statutes allow the original contractor to file an Affidavit with the town clerk in which the subject property is located within fifteen (15) days of commencing work, which, if properly filed, protects the original contractor from liens filed by most subcontractors or suppliers.
Persons other than the original (general) contractor must serve a notarized Notice of Intent to Claim Mechanic’s Lien on the town clerk within the ninety-day time limit in which the Certificate Of Lien must be filed. The notice must be properly served on the owner. The general contractor must also be served with the Notice of Intent to Claim Mechanic's Lien if the general contractor has properly filed an Affidavit with the town clerk stating the general contractor’s name, business address, and a description of the property subject to the lien.Do not confuse the Notice of Intent to Claim Mechanic’s Lien with the Certificate of Mechanic's Lien, even though service of a proper Certificate of Mechanic's Lien has been held to satisfy the notice of intent to claim lien requirement. It is recommended that the person claiming the lien file both documents.
3. Deadline for filing a Lien:
Lien claims must be filed within ninety days after the date of last performance of services or furnishing of materials by the lien claimant
4. Forclosure Actions:
No later than one year from the date that the lien was recorded, or sixty days after any final disposition of an appeal taken under Connecticut General Statutes, Section 49-35a, of a reduction or discharge order.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
In New Jersey, only three tiers of claimants have lien rights.
1. claimants who perform work directly for the owner (e.g., general contractors, construction managers (at-risk and agent), licensed architects, designers, engineers, land surveyors, certified landscape architects, professional planners, prime contractors on a multiple prime project, etc.) may file a lien.
2. Subcontractors, are also included as well as;
3. Sub-subcontractors) may also file a lien.
One exception exists however. *The New Jersey Supreme Court has held that suppliers to suppliers may not file a lien claim regardless of their tier due to the difficulty involved in identifying these parties*.
2. Notice Requirements:
No standard "Notice to Owner" form is required in the State of New Jersey, however Construction Lien claims are required to be served on the owner of the property (or the tenant, as the case may be) and affected contractor(s), and filed with the Clerk of the County where the property is located. A Notice of Unpaid Balance and Right to File Lien is also required to be filed with the County Clerk; however, in the case of a residential construction project, a Notice of Unpaid Balance and Right to File Lien is also required to be served on the “owner” and affected contractor(s).
3. Deadline for filing a Lien:
Construction liens must be filed within ninety (90) days and served within ten (10) days. The ninety-day period commences from completion of the claimant's work or the last date on which material was furnished.
Lien claimants on residential construction projects are also required to file a “Notice of Unpaid Balance and Right to File Lien,” together with a demand for arbitration, as a prerequisite to filing a construction lien claim. Unless the parties have otherwise agreed, in writing, to an alternative dispute resolution process, the Demand for Arbitration shall be filed with the American Arbitration Association (AAA) to institute an expedited proceeding before a single arbitrator designated by the AAA.
4. Foreclosure Actions:
An action to foreclose a lien must be commenced within one (1) year of completion of the claimant's work. The only exception is if an owner serves a demand that a lawsuit be started within thirty (30) days. If the one-year or thirty-day deadline is not met, the lien claim is unenforceable.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien:
Any person having performed or furnished labor or material, or both, to an amount exceeding $25 in or for the erection, alteration or repair of any structure, in pursuance of any contract, express or implied, with the owners of such structure or with the agent of such owner or with any contractor who has contracted for the erection, alternation or repair of the same and for the furnishing of the whole or any part of the materials therefore, including any person who has performed or furnished labor or material, or both, for or as such structure under a contract with, or order from, any subcontractor to obtain a lien upon such structure and upon the ground upon which the same may be situated or erected.
2. Notice Requirements:
No Notice to Owner is required prior to the start of a project, however it is wise to send a basic Notice to Owner for the purpose of educated all parties involved that they may be subject to a lien if payment is not received for work done in the improvement of the property.
When a Statement of Claim is filed, lien claimants are required to send, by certified mail, return receipt requested, a notice to all lien holders on the real estate, which is the subject of the actions, and to the tenants holding a leasehold interest. Also, a Writ of Scire Facias is required to be furnished if the lien is on an occupied place of residence. A copy of the Writ must be left with some person residing in the structure to which the labor was done or for which the materials were furnished and, if not occupied as a place of residence, the sheriff must affix a copy of the Writ upon the door or other front part of such structure.
3. Deadline for filing a Lien:
The time limitation for General Contractors to file their Statement of Claim is 180 days from the completion of the project.
The time limitation of all others, including subcontractors and suppliers, to file their Statement of Claim is 120 days from the date of completion.
Note: Providers of rental equipment have no lien rights in the state of Delaware.
4. Forclosure Actions:
In Delaware a Statement of Claim is a part of the Complaint, which is the document to commence lien foreclosure.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Any party that furnishes labor, services, materials, and/or equipment directly for use in the improvement of real property, is entitled to lien rights. This also includes the value of equipment rented for use in the construction of improvements.Any party who performs or furnishes labor for professional design, engineering, or surveying services shall be entitled to a lien on the real property to secure payment for those professional services.
General Contractors,Subcontractors,and Sub-subcontractorsare specifically granted the right to file mechanic’ liens. A Subcontractor is defined as “all such contractors, laborers, mechanics, and persons furnishing materials, who do not contract with the owner but with the general contractor.”
A Sub-subcontractor is defined as any “person performing labor or furnishing material for a subcontractor.” Virginia’s statutes do not address third tier subcontractors.
*Because the statute for Sub-subcontractors provides a lien to any person performing labor or furnishing material for a Subcontractor, it is doubtful that third-tier subcontractors have lien rights.
2. Notice Requirements:
A General Contractor must give notice of a claim of lien to the Owner by mailing a copy of the memorandum of lien to the owner and filing a certificate of such mailing at the same time the memorandum of lien is filed,A Subcontractor must give notice of the filing of its lien to the owner in a form approved by statute(Notice to Owner).
A subcontractor is not required to file a certification of mailing a copy of the memorandum of lien to the owner.The best practice is to file the written notice of the filing of the lien to the owner at the same time the memorandum of lien is filed. In addition, a Sub-subcontractor must give notice of its lien to the owner and to the General Contractor(Notice to Owner and General Contractor). The notice must be in writing and must advise the owner and General Contractor where appropriate, of the amount and character of the claim. When constructing a one or two family dwelling unit, all lien claimants may be required to notify the mechanics lien agent that it is providing labor or materials in order to have an enforceable lien.
Although there is no statutory time limit on when notice is to be given to the owners, the certificate of mailing must be filed with the memorandum of lien, so effectively the owner must be notified when the lien is filed. In addition, the owner’s liability for a lien by a Subcontractor is limited to the amount in which the owner is indebted to the General Contractor at the time it receives the notice. Therefore, a Subcontractor who delays giving notice runs the risk that, in the meantime, the owner will pay the General Contractor the balance of the contract and thereby defeat the lien.
3. Lien Deadlines:
Ninety (90) consecutive calendar days (not 3 months) after the last day of the month in which the claimant last furnishes labor and/or materials for the project, or ninety (90) days after the last date on which the project is completed or the work is terminated, whichever occurs first.
4. Foreclosure Actions:
Six (6) months after the date on which the lien is filed or two months after the project is completed or the work is terminated, whichever occurs last.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien: Any party that furnishes labor, materials and/or equipment directly for use in the improvement of real property, is entitled to lien rights. This also includes the value of equipment rented for use in the construction of improvements. North Carolina General Statute 44A-8 also provides that any party who performs or furnishes labor or services for professional design, engineering, or land surveying shall be entitled to a lien on the real property to secure payment for those professional services.
2. Notice Requirements:
General Contractors - To avoid the possibility of double-payment liability to lower tier subcontractors and suppliers, A General Contractor may protect themselves by posting and filing a Notice of Contract pursuant to G.S. 44A-23(b). To take advantage of this protection, a Contractor must, within 30 days after the building permit is issued for the project, file the Notice of Contract with the Clerk of Court in the county(s) where the project is located and post a copy of such notice (substantially in the form set forth in G.S. 44A-23(b)(2)) in a visible location on site adjacent to the posted building permit.
Sub-Contractors/Suppliers - second or third tier subcontractors must identify themselves to the Contractor by serving the Contractor with a Notice of Subcontract substantially in the form set forth in G.S. 44A-23(b)(3). The Contractor then becomes obligated to serve notice upon that lower tier subcontractor or supplier within five days after the Contractor makes a payment to the first tier sub. If the Contractor timely notifies the lower tier subcontractors and suppliers when the Contractor makes such a payment, then the lower tier subs may not enforce a subrogation lien against the owner’s interest in the real property. The statutes do not require the filing of Notice of Subcontract within any set period of time. A Notice of Subcontract can be serviced prior to the furnishing of services or materials or anytime thereafter. It is, however always a good idea to file the Notice of Subcontract sooner rather than later in order to insure that sufficient funds remain owing to first-tier subcontractor.
3. Deadline for filing a Lien:
General Contractors - A Contractor’s Claim of Lien on Real Property may be asserted by a contractor who has dealt directly with the owner. Generally, a Claim of Lien on Real Property must be filed within 120 days after the last furnishing of labor and/or materials to the project. and must be filed with the Clerk of Superior Court of the county where the project is located. To enforce the Claim of Lien on Real Property, a lien claimant must commence a lien enforcement lawsuit within 180 days after the last furnishing of labor and/or materials to the project.
Sub-Contractors/Suppliers - a Subcontractor/Supplier of any tier who furnishes labor and/or materials for the improvement of real property and is not in direct contact with the property owner is entitled to a lien upon the funds owed the person with whom he has contracted; provided, such funds arise out of the improvement of real property on or to which he has furnished labor, materials and/or rental equipment. In addition, one can assert by subrogation a Notice of Claim of Lien Upon Funds owed by another upstream obligor (subcontractor or contractor) provided the “payment chain” is not broken (i.e. the money is still owed).
4. Forclosure Actions: To enforce the Claim of Lien on Real Property, a lien claimant must commence a lien enforcement lawsuit within 180 days after the last furnishing of labor and/or materials to the project.14
5. Last Day on Job for adhering to prescribed guidelines: The deadlines for Lien filings are based on the last day on the jobsite or materials supplied. This means the last day of substantial work. Returning to a jobsite for cleanup, repairs, misc finish work do not extend your deadlines.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien:
Anyone providing labor, service or materials “used in the erection, alteration, or repair of a building or structure upon real estate” or “for the improvement of real property” are entitled to assert a mechanic's lien against the property.Providers of labor, services and materials fall into two categories depending upon the party with whom they contracted.
Category 1 applies to contractors who have agreements directly with the owner.
Category 2 of mechanic's liens applies to subcontractors, sub-subcontractors, and materialmen who do not have agreement directly with the owner.
Sub-subcontractors and materialmen who fall into this catagory are referred to as remote claimants in these materials. In addition to these parties, several other parties are entitled to mechanic's lien protection under South Carolina law. For example, entities providing rental equipment actually used in the improvement or alteration of real property are entitled to lien claims.Also, well diggers, security guards, grading subcontractors, architects and surveyors are entitled to lien rights as well.
2. Notice Requirements:
General Contractors are required to record a Notice of Project Commencement, upon starting a job.
Sub-Contractors and other remote claimants can protect their lien rights by delivering a Notice of Furnishing Labor and Materials by certified or registered mail to the general contractor.
3. Deadline for filing a Lien:
Ninety (90) consecutive calendar days (not three (3) months) after the last day on which the claimant supplied labor and/or materials for the project.
4. Foreclosure Actions:
Claimants must commence a suit to foreclose the lien claimed and file a Lis Pendens concerning the subject property within six (6) months of the filing of the lien statement.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 8/09
1. Parties Entitled to Lien:
Those that have the right to claim a lien are;
(1) companies and individuals who perform labor;
(2) union trust and trustees;
(3) materialmen who furnish materials that are delivered to the site;
(4) equipment suppliers whose equipment is delivered to the site;
(5) architects, surveyors and engineers; and
(6) General contractors. Only subcontractors, material and equipment suppliers who have a direct contract with the owner or its agent have the right to claim a lien.,
*Subcontractors to subcontractors do not have lien rights.
2. Notice Requirements:
Alaska law does not require any notice or filing prior to the performance of work. However, lien claimants will find it desirable to file a Notice of Right to Lien, as it provides several benefits.
First, if a Notice of Right to Lien is given to both the lender and the owner, the claimant has a mechanism to assure that the information provided regarding the project and the construction lender is accurate. If the lender is not providing construction financing for the project identified, it must so advise the claimant within ten (10) days of receiving the notice of right to lien.
Second, by giving the Notice of Right to Lien , the person is entitled to an advance notice to “perfect” his lien rights. In order to perfect his lien rights, the claimant must record a Claim Of Lien, and he must do so within certain time limits. Those time limits can be shortened by the owner from ninety (90) days down to fifteen (15) days, and the owner is not otherwise obligated to tell anyone he is about to do so. However, by giving a Notice of Right to Lien to the owner, the claimant is accorded the right to be given advance notice of the owner’s action of shortening the time for recording claims of lien.
Third, a claimant must show that an owner not only knew about but also consented to the furnishing of the labor, material, or equipment by the claimant. If a Notice of Right to Lien is not given, the claimant must prove the owner both knew about and consented to the claimant’s work. If the Notice of Right to Lien is given, a presumption is created that the owner knew and consented. The owner, in order to avoid liability, must try to establish that he either did not know or did not consent to the furnishing of the work by the claimant. This would appear to be an insurmountable burden for the owner if a notice was given and the owner said nothing.
3. Lien Deadlines:
In general, a claimant has ninety (90) days to file a Claim of Lien after the last date on which labor, materials, services or equipment were furnished to a job site. In certain situations, this time limit can be reduced to fifteen (15) days, but in no event is the time for filing a Claim of Lien longer than ninety (90) days. When and Where to File An owner (and sometimes the general contractor) can reduce the time for recording Claims of Liens from ninety (90) days to fifteen (15) days from the date a Notice of Completion is recorded. Please refer to Notice of Completion for a more thorough discussion of this limitation.
4. Foreclosure Actions:
Generally, a lien claimant has six (6) months to file a suit to initiate enforcement of a lien.
A claimant has the option of recording an Extension Noticewithin the first six (6) month period and, by doing so, can extend the life of their lien (and the date to file suit) for up to another six (6) months.
DISCLAIMER: We provide information about the law design to help people cope with their needs; however this is not legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information and your interpretation of it is appropriate to your situation.
Last Update 7/09
1. Parties Entitled to Lien:
In Hawaii, the right to lien is limited to persons or entities furnishing labor or material for the improvement of real property. Generally, only those persons or entities who furnish construction services or labor, or who provide construction materials used in the completion of actual improvements to real property, are allowed to obtain a mechanic’s lien. Therefore, in most cases, general contractor, subcontractors, lower-tier subcontractors, suppliers, laborers, architects, engineers and design consultants, have lien rights under H.R.S. § 507-42. Other persons or associations who also may have lien rights include labor unions, equipment leasing companies, and assignees of the persons and associations described above.
2. Notice Requirements:
Contractors involved with home construction or improvements are required to explain verbally in detail to the homeowner all lien rights of all parties performing under the contract. In addition, the contractor is required to provide the homeowner with a written contract, which must contain relevant information pertaining to the work being performed, must be signed by the contractor and the homeowner, and must be executed prior to the performance of any home construction or improvement.
Although Hawaii does not require a typical "Notice to Owner" as in most states, it is still a good idea to send all parties involved in the project a general notice to owner, advising the parties of your lien rights should payment not be made.
3. Deadline for filing a Lien:
An application of mechanic’s lien must be filed after demand has been made for payment and payment has been refused but in no event later than "within 45 days after the Date of Completion of the improvements on the project." The Date of Completion, under the statute, is the date of filing of an Affidavit of Publication and Notice of Completion confirming publication of a notice that the improvement has been completed or has been abandoned. If no Affidavit of Publication and Notice of Completion is filed, the application of lien must be filed within one year and 45 days after actual substantial completion of the project.
4. Foreclosure Actions:
The deadline for filing suit to initiate a lien foreclosure action in Hawaii is three months after the recording of the lien.
