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Why You Should Send Preliminary Notice Even If It’s Not Required

Why You Should Send Preliminary Notice Even If It's Not Required

Most states require that contractors, suppliers, and other participants on construction projects send some sort of preliminary notice in order to secure lien rights. In states with preliminary notice requirements, failing to send notice is often fatal to a mechanics lien or bond claim. It is still generally incredibly beneficial to send preliminary notice even […]

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Financial Risk and Payment In The Construction Industry: A Primer

This article was originally published on November 25, 2014. It was updated on May 12, 2016. The way that payment works in the world of construction projects is unique. The credit heavy nature, the high number of businesses involved, and the lack of visibility into who is doing what work, make payment issues all-the-more likely […]

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Surprise! You Have A Breach Of Contract Claim

Which States Have the Most Challenging Lien Law?

The basic concept of contract law is that if a party breaches a contract, the other parties to the agreement have a claim against the breaching party. This is called having privity. Recently though, courts have started to allow non-party claims against breaching parties. This has come to be known as the third-party beneficiary doctrine. […]

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When to Use an Unconditional Lien Waiver

Unconditional Lien Waiver

Anyone furnishing labor or materials on a construction project may be entitled to file a lien if they are not paid. Parties at “the top” of the contracting chain – such as the property owner, lender, or general contractor – are highly motivated to successfully complete the project without having any mechanics liens or bond claims […]

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Miller Act Claims Are Not Easily Tossed Aside

Miller Act Claims Are Not Easily Tossed Aside

The Miller Act provides protection for contractors and suppliers on a federal construction project. The Act requires that the prime contractor on a federal project post a bond. This bond covers both first and second tier contractors and suppliers. Generally, if you are a third tier contractor or supplier, you have no rights under the […]

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Why You Shouldn’t Rely on Your General Contractor to Get You Paid

Why You Shouldn’t Rely on Your General Contractor to Get You Paid

Relationships are an essential part of any business. In fact, one of the main ways construction companies maintain and grow business is by forming positive relationships with customers that lead to future contracts or referrals. Sometimes, however, construction companies rely too much on relationships. If there is a customer that always pays on time and […]

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Double Damages For Bad Faith Discharge Claims

Most mechanics lien claims get paid before a foreclosure action is ever required

When a mechanics lien is filed and the lien claimant moves to enforce that lien in court, the owner or other parties of interest have the opportunity to discharge this lien by depositing a certain amount with the court. The amount that must be paid into court to discharge the lien is equal to the […]

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City Sues Subconsultant Without Privity of Contract

Privity of contract is a simple concept. One must possess privity in order to sue another party for contract-related damages… usually. The basic concept of privity essentially means that if you are not a party to the contract, then you cannot receive rights and remedies afforded under that contract. The idea makes sense if you […]

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Fifth Circuit Upholds Payment Bond Rights

Payment bond rights under your state’s Little Miller Act statute are not easily avoided. Little Miller Act statutes allow subcontractors and lower-tiered parties to make claims against the payment bond that every general contractor must post for public projects. This process guarantees a certain level of protection for subs while ensuring a level of efficiency […]

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Signing a Lien Waiver? Here’s What to Keep in Mind

Signing a Lien Waiver

To sign or not to sign? Lien waivers are used all the time in the construction industry. Typically, the party making payment will request or require that the party receiving payment sign and execute a lien waiver as part of the exchange of payment. It is pretty clear why those making payment want the payee […]

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