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US Lien Laws: The Definitive Word Count Rankings

We all know lien law can be incredibly confusing. All 50 states have different rules and requirements for preliminary notices, notices of intent, mechanics liens, lien waivers, lien releases and more. These requirements are outlined by each state’s mechanics lien statute, but reading and understanding these statutes is no easy task, even for trained…

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California Courts Push Right to Repair Act In The Right Direction

California’s Right to Repair Act (Cal. Civ. Code § 895 et seq.) is designed to provide homeowners with exclusive remedy for damages arising out of certain construction defect claims. Originally, California courts in Liberty Mutual Ins. Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 1194, had ruled that homeowners could file common…

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Subordination of Mechanics Liens: The New No-Lien Clause?

Lien waivers have an important, even critical, place in construction payment. The parties closest to the money are highly motivated to make sure the project proceeds free of any lien claims, for several reasons. Not only can mechanics liens potentially force double payment, they cloud the property title and can negatively impact…

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Texas Construction Fund Act: More Protection?

It is no secret that the Texas mechanics lien statute is a rather confusing and daunting piece of legislation. This is especially true for subcontractors as they bear the brunt of strict and complex notice requirements that must be met in order to qualify for mechanics lien protection. The statute requires notices…

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Michigan Court Limits Applicability of Pay If Paid Clauses

 

Pay if paid clauses are design to shift the risk of non-payment to lower tier parties on a construction project. The purpose, in states in which such clauses are allowed, is to obligate a contractor to pay its subcontractor only if the GC has received payment first. This means that absent actual…

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How To Read a Lien Waiver

Not the way to read and sign lien waivers

Lien waivers are important documents that, due to their ubiquitous nature, are occasionally overlooked. The critical importance of lien waivers is grounded in two related areas: the ability of lien waivers to be the cornerstone of fair payment – and…

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Illinois Amendment Allows “Bonding Off” Mechanics Lien

Many lien claimants are worried about a lien claim being “bonded off”. This is usually because parties don’t understand how bonding-off a mechanics lien works and, as a result, fears it, or fears the “loss” of their mechanics lien security. The substitution of the bond for the interest in the property…

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