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The Green Energy Industry and Mechanics Lien and Bond Claim Rights

Mechanics Lien Rights May Be Limited On Solar Projects The portion of the construction industry centered around green energy installations such as solar arrays or wind farms is rapidly expanding. Despite the rapid growth of this segment of the industry, the protection afforded by mechanics liens and bond claims has not necessarily kept pace. The […]

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Payment Bonds Protect Payment Rights on Public Projects: But When Are They Required?

Generally speaking, when a party performs work on a public works project, the necessary remedy for non-payment is to make a claim against the payment bond. Similarly to the mechanics lien right available on private projects, a bond provides security to ensure payment of parties working on the project. Unlike a mechanics lien, however, making […]

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Pursuing or Defending a Bond Claim? Construction Executive Risk Management Lays Out Critical Information

In the world of surety bonds, payment bonds are often the overlooked siblings of performance bonds. As explored in a previous frequently asked questions post — The Difference Between Payment and Performance Bonds — performance bonds are placed to protect those up the contracting chain against non-performance by those below the chain, while payment bonds […]

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Assignment of Bond Claim Rights – Can You Contract Around Bond Limitations?

Payment bonds exist to secure payment rights for parties on a construction project in the event that the contractor defaults on its payment obligations. While any project can be bonded, bonds are generally found on public works, where a bond is normally required for all projects over a certain value. This is because public property […]

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Louisiana Bond Claims: Does the Surety Need to Know?

Bond claims, like mechanics liens, have specific rules that must be followed in order for the claim to be valid. Also like mechanics liens, the rules that govern bond claims very from state to state. Since state bond claim laws are similar to, and often at least partially based on, the Miller Act (which governs […]

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Managing Financial Risk When Contractor Default Is Expected To Soar

Research professor Thomas Schleifer has published a string of op-ed articles at warning those in the construction industry about the financial perils and risks associated with a rebounding economy. In turn, we’ve highlighted these articles and had discussions and Webinars of our own setting forth how to Navigate The Financial Risks of a Rebounding […]

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Payment Bond: South Carolina Supreme Courts Rules on New Case

The Lien Blog is not just focused on mechanics liens; another topic we routinely cover is payment bonds. As we’ve discussed in many other posts, general contractors on public works projects are generally required to secure a bond on the project to ensure payment of subs – and not at the expense of public entity double payment. These bonds […]

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Legal Tips On Extending Credit

Credit Management: Legal Tricks To Make Extending Credit Easier

Last week I wrote an article about the epic battle between Credit Departments and Sales Department. In examining how the two departments can co-exist, and thrive, we discussed a best practice of creating options to take new business. If a customer’s credit doesn’t qualify, in other words, what other options are there to bridge the gap and […]

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Credit Management: Credit Department v Sales Departments – How Everyone Can Get Along

Running a successful business can be full of complications, but your company’s bottom line really boils down to doing two things well: (1) Acquiring clients; and (2) Getting paid for what you do. It’s that simple. Or is it? This article examines the balancing act required for companies to perform both of these tasks well, […]

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N.C. Bond Claim Revisions Revisited: Double Payment Protection?

Just a few days ago, a new contributor to the Paid Blog authored a review of the recent changes to North Carolina bond claim law, specifically the revisions to N.C. Gen. Stat. § 44A-27. That post did a great job of clearly setting forth the statutory changes and additions, and defining the stated reasons for […]

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North Carolina Mechanics Lien Law: New Bond Claim Protection for General Contractors

If you’re a general contractor on a construction project, you know that one of the most important parts, besides the construction itself, is ensuring that the flow of money from the project owner to subcontractors is as smooth as possible. Additionally, if you have experience on public projects, you likely know that the law requires […]

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