Lien waivers, including waivers of the right to make a bond claim, are common documents that are exchanged on every construction project. Far from being innocuous “throw-away” documents standing in the way of receiving payment, or documents that just need to be rubber-stamped with no review, waivers can have significant…Read More
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In many states, the notice required prior to filing a valid mechanics lien can be classified as either a preliminary notice or a notice of intent to lien. And, while less common, it’s not unheard of for a state to require both a preliminary notice prior to (or within a…Read More
The requirements that must be met prior to filing a valid mechanics liens can be complex. These requirements range from sending the appropriate preliminary notices, to filing the lien within a specific time period, to serving the lien on the necessary parties by the mandated method. All of this presupposes,…Read More
Preliminary Notice is Necessary
On a residential project, a contractor is required to provide a Pre-Construction Notice to Owner prior to starting work. While the general contractor’s notice to owner works to the benefit of the sub-contractors and material suppliers, his failure to give the required notice affects their lien rights. …
Earlier this year, the United States District Court for the Western District of Arkansas issued an opinion that could have far-reaching implications on the state’s mechanics lien laws, holding that “profits” were not recoverable in a mechanics lien claim unless the entire construction project was completed.
In Erdman Co. v. Phoenix Land & Acquisition LLC,…Read More
Short Answer: Only in the following states: Arkansas, Colorado, Connecticut, Louisiana, Missouri, North Dakota, Pennsylvania, Wisconsin, Wyoming.
Long Answer: It’s extremely common for folks to not quite understand the differences between preliminary notices and notices of intent to lien; and further, to not quite understand when a state requires notices of…Read More